News

Early last week, the Derivatives Service Bureau (DSB)—the body in charge of two widely used over-the-counter derivative trade identifiers—released its assessment of industry readiness for the Unique Product Identifier, the first globally mandated OTC derivative identifier.

State Street Global Advisors has warned investors they may face additional costs due to the firm’s approach to the upcoming change to T+1 settlement in the US. The Securities and Exchange Commission is reducing the settlement time for US equities and corporate bonds from two days, referred to in the industry as T+2, to one day, or T+1, on May 28. Canada and Mexico are also moving to T+1 settlement for securities.

After launching the world’s first mutual fund 100 years ago, MFS Investment Management is poised to make its debut in the ETF market. In the most powerful sign yet that the low-cost trading vehicles are taking over the world of investing, the firm has applied to create five actively managed exchange-traded funds spanning stocks and bonds, according to Monday filings with the Securities and Exchange Commission.

Exchange traded funds have taken over as the dominant holding in the fast-growing multitrillion-dollar US model portfolio market, helping to turbocharge their already rapid growth. ETFs accounted for 51 per cent of underlying assets at the end of last year, up from 46.7 per cent in early 2022, according to data from Broadridge Financial Solutions, a financial technology company, which puts the size of the US model portfolio market at $5.1tn.