Global provider of data, technology, and market infrastructure Intercontinental Exchange, Inc. (ICE), today announced that LiquidityBook’s Order and Execution Management System (OEMS), LBX, has been integrated with the ICE ETF Hub. The integration will allow the company to offer access to the ETF primary market, where new ETF shares are created and redeemed.
The LBX suite has integrated with ICE ETF Hub’s FIX API, enabling seamless connectivity for third-party platforms and ETF market participants to efficiently manage their creation and redemption orders on the ICE ETF Hub platform. LBX users can now receive real-time updates on ETF creations and redemptions, empowering them to effectively oversee portfolio and trade management within the OEMS.
Peter Borstelmann, President of ICE Bonds, said:
By modernizing and bringing new efficiencies to the creation and redemption process, the ICE ETF Hub offers a powerful platform for accessing the ETF primary market. Connecting with LiquidityBook’s LBX OEMS gives institutional investors seamless access to our workflow over a highly scalable trade management platform, and it builds on our goal of providing an open architecture framework to create a unique network for ETF market participants.
ICE ETF Hub is a platform built on an open architecture, aiming to enhance effectiveness and standardization within the primary trading market of ETFs, where the creation and redemption of ETF shares take place. This process is crucial for maintaining the correlation between the ETF’s share price and its underlying net asset value, while also enabling funds to access markets with efficiency. Presently, ICE ETF Hub provides comprehensive support for various categories of US-listed ETFs, including equity, fixed income, derivatives, commodities, and multi-asset funds. Additionally, participants in the ETF primary market can leverage the platform’s features to easily assemble and negotiate customized basket proposals.
Kevin Samuel, CEO of LiquidityBook, added:
Our OEMS platform helps asset managers, hedge funds and other institutional investors manage positions and transact efficiently across markets. Our cloud-based offering provides our clients an alternative to the inefficient file-to-file and spreadsheet-based processes that portfolio managers have used in the past and gives them more capacity to handle increasing order volumes, which promotes growth. We are excited to work with ICE to expand this functionality within the ETF creation and redemption process.
