Euroclear has added its first ETF issuer from the Middle East to its international ETF platform. Abu Dhabi-based asset manager Lunate has launched Irish-domiciled UCITS ETFs using Euroclear’s International Central Securities Depository (ICSD) model, according to a statement from the two firms.
Lunate is the first issuer from the region to structure an ETF under the ICSD model. In this setup, settlement and custody are concentrated in one international hub rather than fragmented across local markets.
The first funds issued via Euroclear Bank are the Boreas S&P AI Data, Power & Infrastructure UCITS ETF and the Boreas S&P Absolute Luxury UCITS ETF. Both are listed on Xetra in Frankfurt and on the Abu Dhabi Securities Exchange.
The two ETFs are part of Lunate’s Boreas thematic range, which is built around long-term investment themes. The range currently consists of three ETFs offered across multiple listing venues and currencies.
Distribution and post-trade structure
By using Euroclear’s iETF platform, Lunate connects its funds to Euroclear’s international network of market participants. According to the source, this gives access to investors in Europe as well as markets in Asia, Latin America and the Middle East.
Euroclear describes the ICSD model as an industry standard because it consolidates liquidity into a single pool across currencies and concentrates both primary and secondary market activity in one location, whether trading takes place on exchanges or over the counter. The company says this structure is intended to make ETF settlement and distribution more efficient and consistent for cross-border investors.
