WisdomTree has migrated its 62-strong range of UCITS ETFs to the International Central Securities Depositary (ICSD) model ahead of the Brexit deadline.

From 29 March 2021, when the UK leaves the European Union, ETF issuers will no longer have the ability to use the CREST system as an issuing CSD which has been used as the standard operating model for almost all funds domiciled in Ireland.

Euroclear Bank and Clearstream Banking Luxembourg will act as the primary CSD’s for the settlement model going forward.

The key advantage of the transition is it will ensure trading of the ETFs can continue across multiple European exchanges when the extended period of equivalency currently agreed to by the UK and European Union ends as a result of Brexit.

Brexit spurs ETF migration to ‘more efficient’ ICSD model

Furthermore, the ICSD model enhances liquidity for investors in the ETFs with less fragmentation across multiple settlement systems.

WisdomTree has migrated a total of 62 ETFs to the ICSD model which includes several currency-hedges share classes per fund.

The UCITS range includes:

  • WisdomTree Artificial Intelligence UCITS ETF
  • WisdomTree AT1 CoCo Bond UCITS ETF
  • WisdomTree Battery Solutions UCITS ETF
  • WisdomTree CBOE S&P 500 PutWrite UCITS
  • WisdomTree Cloud Computing UCITS ETF
  • WisdomTree Emerging Asia Equity Income UCITS
  • WisdomTree Enhanced Commodity UCITS ETF
  • WisdomTree EUR Aggregate Bond Enhanced Yield UCITS ETF
  • WisdomTree EUR Government Bond Enhanced Yield UCITS ETF
  • WisdomTree Europe Equity Income UCITS ETF
  • WisdomTree Europe Equity UCITS ETF
  • WisdomTree Europe SmallCap Dividend UCITS ETF
  • WisdomTree Eurozone Quality Dividend Growth UCITS ETF
  • WisdomTree Germany Equity UCITS ETF
  • WisdomTree Global Quality Dividend Growth UCITS
  • WisdomTree India Quality UCITS ETF
  • WisdomTree ISEQ 20 UCITS ETF
  • WisdomTree Japan Equity UCITS ETF
  • WisdomTree Japan SmallCap Dividend UCITS ETF
  • WisdomTree UK Equity Income UCITS ETF
  • WisdomTree US Multifactor UCITS ETF
  • WisdomTree US Quality Dividend Growth UCITS ETF
  • WisdomTree US SmallCap Dividend UCITS ETF
  • WisdomTree USD Floating Rate Treasury Bond UCITS ETF

Other ETF issuer have made the transition in recent months including HANetf, DWS and UBS Asset Management.