Calastone, the global fund transaction network, has partnered with exchange-traded funds electronic trading platform Navesis-ETF to provide market infrastructure that will enable platforms, fund supermarkets and wrap providers to execute ETF transactions.

Distributors will also be able to benefit from Calastone’s trade notification service which will automatically route ETF settlement instructions to either the venue of settlement, or settlement agent, Calastone said in a statement.

"An increasing amount of advisors are recognising the benefits that ETFs can add to a low cost, well diversified portfolio. Advisors are increasingly voting with their feet when it comes to a platform able to support the efficient use of ETFs and any initiative that makes ETFs more accessible to more investors has to be good news," said Nick Blake, head of retail at ETF issuer Vanguard Asset Management.

In April, Calastone was selected by Transact, the wrap service firm, to provide it with a re-registration solution.

Platforms are now required by law to offer re-registration services to clients. Rules do not force providers to automate the service but it is “widely acknowledged” that electronic straight through processing is the preferable approach, Calastone said.