Euronext has launched an exchange-traded fund (ETF) net asset value (NAV) trading facility to enable investors to trade funds based on the value of their underlying assets.
The NAV trading facility will execute orders based on NAV in a once-per-day process. Euronext said this will provide investors with a simpler and more accessible mechanism for trading at NAV which avoids the need to manage intra-day trading positions. The facility will also enable European savings plans to include ETFs in their product selection by meeting their investment criteria.
Pedro Fernandes, head of European exchange traded products at Euronext, said: “The NAV trading facility complements intra-day/on-book trading and facilitates further usage of ETFs by investors, thereby supporting the overall development of ETFs in Europe.”
ABN Amro Basic Funds is the first issuer on the platform, following the launch of its AABF ETF ES50 and AABF ETF AEX on 6 February. ABN Amro director Bart Manje said the initiative will give its clients increased flexibility to trade ETFs.
“Not every investor is the same. Today we offer them the choice to place their orders in the order book with continuous liquidity or via the NAV trading facility against the end-of-day NAV,” he explained.
NAV trading is available for all Euronext-listed open-end funds, including ETFs, alongside its central order book. Euronext said the offering was created in consultation with the fund industry and its competitive market model is in line with European Securities and Markets Authority guidelines for ETFs.