State Street (STT) has introduced a free service to help European investors move ETFs between countries, the Financial Times reports.
Trading ETFs between countries can lead to higher costs for investors due to the fragmented nature of the European market, according to the story.
“It has become increasingly evident that the cross-border transfer of ETF shares is one of the biggest challenges that the European ETF industry faces,” said Robert Rushe, head of ETF servicing at State Street Global Services.
“Currently, there is no single settlement system for different stock exchanges across the region, making the transfer of ETFs across national borders problematic,” the newspaper reported on its website.
State Street has constructed a database called the ETF Cross Border Matrix to be offered free of charge to market participants “to help them better understand how they can move ETFs between different countries,” according to the FT.
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