DTCC Expands Clearing for Options-Based ETFs, Adding Earlier Access to ETF Transaction Data
Updated
Updated · Markets Media · May 20
DTCC Expands Clearing for Options-Based ETFs, Adding Earlier Access to ETF Transaction Data
6 articles · Updated · Markets Media · May 20
DTCC said NSCC and DTC can now centrally clear ETF shares that include listed options, extending post-trade support to options-based ETFs through connectivity with OCC.
Under the framework, ETF shares and DTC-eligible components clear through NSCC and settle at DTC, while OCC clears the listed options and NSCC transmits transfer instructions between counterparties.
The move targets fast-growing products such as covered-call and FLEX options ETFs, which DTCC and OCC said have gained traction as investor demand and product innovation accelerate.
DTCC also introduced earlier access to preliminary ETF transaction data to improve liquidity estimation, part of a broader push to strengthen risk management and support record ETF inflows.
By centralizing complex ETF clearing, is Wall Street swapping thousands of small risks for one catastrophic point of failure?
With tokenization on the horizon, is this massive upgrade to traditional clearing already on the path to becoming obsolete?