Share page with AddThis


BlackRock splits ETF servicing mandate across four custodians

BlackRock branchGlobal fund manager BlackRock has announced plans to spread the post-trade servicing of its US-based ETF assets across four global custodians – BNY Mellon, Citi, JP Morgan and incumbent provider State Street.

Citi will be responsible for 40% of the $2.3 trillion iShares portfolio, while JP Morgan will get 30% and BNY Mellon and State Street will both service 15% of the assets.

The migration of assets is expected to begin in the second half of 2022 and will take roughly 18 months.

While the deal relates to BlackRock’s US-based ETF assets, it remains to be seen if a similar move will be made for its ETF assets elsewhere.

The company stated that the due diligence and RFP process for iShares Ireland-domiciled assets is “ongoing” and the outcome will be announced at a later date.

According to BlackRock, the decision to switch from one custodian (State Street) to four “is based on our desire to create a robust operating model for servicing ETFs, which will help us scale the iShares franchise and mitigate concentration risk,” said Derek Stein, senior managing director and global head of technology & operations at BlackRock.

©2021 fundsTech

Most read features

Roundtable: New age thinking

Our panel of experts discusses the state of innovation in the industry and whether technology and the pandemic have created a once-in-a-generation opportunity to change. Chaired by Nicholas Pratt.

Cryptocurrencies: Solving crypto’s sustainability problem

Cryptocurrencies like bitcoin have a huge carbon footprint but, as Nicholas Pratt discovers, environmentally friendly alternatives exist.

Inside view: Who owns the data?

SteelEye chief executive Matt Smith finds that firms’ increasing use of third parties to store and manage data is creating tricky issues over data ownership.

Proxy voting: Making every vote count

With stewardship more important than ever and digital technology to the fore, surely it is time to solve the problem of proxy voting? Nicholas Pratt investigates.

Interview: Rise of the robo-adviser

FundsTech talks to Nutmeg’s CTO, Matt Gatrell, about the role of technology in its online offering.

Sponsored Profiles

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...

Sponsored profile: A question of trust

AcrobatsAs more firms adopt agile software development practices, Petra Roche of Metrosoft explains why trust is so important in making agility work.

Sponsored feature: Compliance and the case for agility

CheetahFundsTech talks to Janusz Lorenc, CEO of Metrosoft, about asset managers’ approach to compliance risk and the case for agile software development.

Sponsored feature: Outsourced dealing

On_targetFundTech talks to Amundi Services’ Romain Sauvage and Gianluca Minieri about an increased demand for outsourced dealing among fund managers, driven by...