Citi Enables FIX API Connectivity with Bloomberg BSKT to Simplify ETF Services

Citi Investor Services has enabled Financial Information eXchange (FIX) API connectivity between  its proprietary Advanced Citi ETF System (ACES) platform with Bloomberg’s BSKT service to further automate  the ETF creation and redemption process for authorized participants (APs). This builds on an existing  integration between Citi ACES and BSKT, which is Bloomberg’s ETF creation and redemption solution for the  primary market.  

FIX refers to a communications protocol for the international real-time exchange of securities transaction  information. The protocol is used by the FIX community, which includes close to 300 member firms.  

The new functionality represents a significant advancement in the market, offering a streamlined process that  eliminates the need for APs to build their own FIX engines or Order Management Systems and connect directly  to Citi. This provides APs with a simplified and more efficient solution for ETF order taking and negotiating ETF  baskets, using Bloomberg’s BSKT service to reduce operational complexity. With Bloomberg’s global reach and  industry reputation, the new functionality is expected to support large order volume and flow from APs. 

“We continue to introduce new capabilities on our proprietary ACES platform in response to client and user  demand, and market developments. With ETF Share Class approval imminent, there is a growing need for  automated order tools that can handle significant increases in order volume. Citi is the first in the industry to  offer FIX API connectivity with Bloomberg for ETF order taking as we make our services more accessible,  scalable, and robust,” said Paul Spyropoulos, ETF Product Manager for Citi Investor Services. 

Prior to this integration, APs accepting orders from market makers via Bloomberg had to place these orders  through Citi’s ACES platform. Similarly, APs negotiating ETF baskets using the Bloomberg Terminal for  negotiation had to log into Citi ACES to submit/approve transactions. Now, APs also benefit from a fully  electronic workflow with real-time transactions and updates, which are crucial given the high volume of ETF  orders before the daily close of trading.  

“Expanding our integration with Citi aligns with our vision on delivering solutions and services that support  the growth of the ETF landscape, said Miguel Alvarez, Head of ETF Primary Markets Product at Bloomberg.  “Our priority is enhancing BSKT by continuing to invest in increasing workflow efficiency and streamlining  processes. This integration moves us closer to delivering a flexible architecture with seamless connectivity  that optimizes ETF primary markets workflows.”  

The new integration is live for APs in North America with plans to extend its use globally. It follows from a  February 2024 implementation of FIX API connectivity within the Citi ACES platform, enabling APs to connect  directly to ACES to simplify order management and onboarding, as well as ETF share creation and  redemptions. 

With over US$28 trillion in Assets under Custodyi, Citi Investor Services provides clients with a  comprehensive post-trade servicing platform, covering Fund Services, including ETF Services, as well as  Global and Direct Custody.