The first products to be listed on the London Stock Exchange as part of the range were the iShares MSCI Russia Capped Swap ETF, which tracks the MSCI Russia Capped Index, and the iShares S&P CNX Nifty India Swap ETF, which tracks the S&P CNX Nifty India Index. The counterparties for these funds are RBS, UBS and Credit Suisse.

The firm will focus on developing swap-based products covering markets where exposure cannot be “efficiently constructed” using physical-based ETFs while upholding UCITS III rules. This is where access is restricted due to liquidity or operational constraints.

Key features of the funds in the new range, according to BlackRock, are that they will offer multiple counterparties, have liquid collateral and be over-collateralised. The collateral and index holdings, swap spreads and aggregate swap exposure will be updated daily and viewable on the iShares website.