State Street to Delist 5 ETFs to Concentrate Liquidity

State Street to Delist 5 ETFs to Concentrate Liquidity

The firm says delistings will reduce spreads and concentrate liquidity.

Reviewed by: Staff
Edited by: James Rubin

State Street Global Advisors (SSGA) is set to delist five ETFs from multiple trading venues to “concentrate liquidity on a smaller number of exchanges”.

SSGA will delist the $537 million SPDR MSCI Japan EUR Hdg UCITS ETF (JPEH) from the London Stock Exchange (LSE), effective May 10.

Meanwhile, the $86 million SPDR Bloomberg 10+ Year U.S. Treasury Bond UCITS ETF (LUTR), the $13 million SPDR Bloomberg 7-10 Year U.S. Treasury Bond UCITS ETF (TRSX) and the $12 million SPDR Bloomberg China Treasury Bond UCITS ETF (CHNT) from delist from the Euronext Milan on July 10.

Finally, the $861 million SPDR MSCI EM Asia UCITS ETF (EMAD) will delist from Euronext Paris on May 10.

In a shareholder notice, SSGA, said: “The investment manager is of the view that the company should aim to list shares on exchanges where there is sufficient demand, concentrated liquidity and where trades can be made with competitive spreads.

“Following a recent review, the directors have decided to apply to delist some trading lines of the funds in order to concentrate liquidity on a smaller number of exchanges and to reduce spreads rather than having listings on a larger number of exchanges with lower volumes.

“Maintaining listings which only have small volumes of trading can result in reduced liquidity at a higher price.”

HSBC Delists 4 ETFs

For each ETF that will be delisted, SSGA will keep at least one ETF listed on another European exchange.

Last week, HSBC Asset Management closed four emerging market ETFs due to low assets under management, as Brazil and Latin America ETFs struggled to bring in returns following slower economic activity this year.