In a white paper titled A New ETF Asset Servicing Paradigm Emerges, Calastone said the process requires automation and standardisation, as issuers ask asset servicers for «bespoke» solutions and customising these on a client-by-client basis may «overwhelm providers and impede scalability». ETF creation refers to authorised participants (APs), which are typically institutions, assembling a portfolio mirroring the ETF's index, and delivering it to the ETF issuer in exchange for new ETF shares, which can be listed for trading. Redemptions sees APs returning ETF shares to the issuer for ...
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