BNY Mellon has launched an end-to-end technology solution to support ActiveShares non-transparent actively managed exchange-traded funds. This solution delivers a digital workflow from order placement through execution of underlying securities associated with creation and redemption activity. It incorporates the authorized participant representative (APR) and verified intraday indicative value agent (VIIV Agent) in daily ETF workflows to enable efficient investor access without daily holding disclosure. The platform includes security restriction and approval processing features within the order ticket, eliminating the need for off-line phone and email communications. This results in a fully digital audit trail for all ETF orders and brings the APR role into deal handling. Legg Mason plans to be one of the first issuers to launch under the model with BNY Mellon as its service provider.
