To list an ETF in multiple trading venues using the CSD model, the ETFs must be issued in a given CSD (Issuer CSD) and there must be a link with CSDs (Investor CSDs) in the country of the trading venues. The settlement process occurs in the CSD of the trading venue’s country. This means that when an investor buys an ETF on one trading venue and sells it on another, there must be a realignment between the two CSDs involved in the transaction.

The ICSD issuance model enables issuance of ETF shares into the ICSD environment (Clearstream or Euroclear) in order to list them in multiple trading venues. Once ICSD model shares are issued by the ETF’s transfer agent (TA) via a jointly appointed common depository into the ICSDs, secondary market trades of the ETF shares can be settled without involvement of the TA, thus significantly easing transferability of shares via the Bridge linking the two ICSDs or onward at CSDs in domestic markets.

The ICSD+ issuance model also enables issuance of ETF shares into the ICSD environment facilitating listing in multiple trading venues. It is based on the automated Fund Issuance Account (FIA) capability of Clearstream, removing the need for a common depository. Secondary market trades of the ETF shares can also be settled without the TA’s involvement, within the ICSDs, across the Bridge and at other CSDs.