Barclays joins ETFX as swap provider

Barclays Capital has joined ETF Securities’ ETF Exchange (ETFX) platform as a swap provider and authorised participant.

Barclays joins the existing participants on the third generation ETF platform, including BofA Merrill Lynch, Citi and Rabobank.

ETFX aims to diversify index replication across a range of financial institutions, in order to mitigate counterparty risk and to concentrate liquidity within a single issuance vehicle.

The platform offers 21 equity ETFs with a focus on resource-based funds, as well as double leveraged and double short funds. This range is listed on five European exchanges, including the London Stock Exchange, and is traded in three currencies, comprising the US dollar, euro and sterling.

Barclays Capital head of equities, EMEA and Asia Pacific Dixit Joshi says: "ETFs are an increasingly important part of an investor's portfolio and we look forward to working with ETF Securities to offer our clients liquidity across the full range of ETF products as part of our European Equities platform."

ETF Securities says the evolution of ETFX will make redundant the current single bank issuance models.

The ETF issuer adds there is scope for further participants to join its third generation platform in the future.