The first actively managed fixed income ETF on Euroclear Bank's international structure has been launched by Pimco. 

The Low Duration US Corporate Bond Source Ucits ETF has listed on the London Stock Exchange and is available for trading.

The ETF’s primary market issuance will be in Euroclear Bank, the international central securities depository (ICSD). Additionally, transaction settlement – both OTC and on-exchange – will take place within the ICSD structure, reducing risk and processing costs.

Local CSDs can also provide post-trade services for such internationally-structured ETFs via their respective link with Euroclear Bank.

“Pimco is known as an innovator, offering value-added ETFs through active and smart beta strategies,” said said Howard Chan, Pimco ETF product manager. “This step continues that spirit of innovation to improve European ETF trading dynamics.”

Stephan Pouyat, global head of capital markets at Euroclear commented, "Pimco is embracing more efficient post-trade processing, circumnavigating the need for time-consuming realignments and extra inventory buffers when buying an ETF in one domestic market and selling it on in another. As a result of issuing in this international format, bid/offer spreads are expected to tighten considerably, which should drive greater investor interest in ETFs across Europe and beyond.”