Franklin Templeton adopts Euroclear’s international ETF structure for European ETFs

Sep 8th, 2017 | By | Category: ETF and Index News

Franklin Templeton has adopted Euroclear‘s international security structure for its European line-up of ETFs.

Franklin Templeton partners with Euroclear to debut ETFs in Europe

Euroclear provides a single point of settlement for Europe-listed ETFs.

Launched in 2013, Euroclear’s international structure for ETFs aims to bring increased efficiency to a process that had previously only been supported by fragmented domestic market practices across Europe.

Euroclear provides one place of settlement – an international central securities depository (ICSD), reducing the complexity, cost and risk involved in ETF issuance. ETFs to the value of €230 billion ($271 billion) are currently issued in the international structure, which represents over one third of the European ETF market.

The ETFs have been initially listed on London Stock Exchange and settle directly in the ICSD.

“We are very excited to bring our Franklin LibertyShares ETF platform to Europe following our successful launches in the US and Canada and to partner with Euroclear to make the trading and settlement of our ETFs as simple as possible for our clients,” said Patrick O’Connor, head of global ETFs, Franklin Templeton.

Stephan Pouyat, global head of capital markets and funds services, Euroclear, added: “We welcome this collaboration with Franklin Templeton and are pleased to be part of their first ETF issuance in Europe. Euroclear are proud to connect Franklin Templeton with our European and global client base, using an international ETF structure that provides an effective and efficient settlement solution.”

Branded as Franklin LibertyShares and linked to custom proprietary indices, the launch includes a pair of multifactor ETFs – the Franklin LibertyQ Global Equity SRI UCITS ETF (FLXG) and the Franklin LibertyQ US Equity UCITS ETF (FLXU) – and a pair of quality dividend ETFs – the Franklin LibertyQ Global Dividend UCITS ETF (FLXX) and Franklin LibertyQ European Dividend UCTIS ETF (FLXD).

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