www.suerf.org/publications/ SUERF Policy Brief, No 1007 1 Passing on the hot potato: the use of ETFs by open-ended funds to manage redemption requests Introduction The market for exchange-traded funds (ETFs) in the euro area has experienced significant growth over the past decade, reaching €1.5 trillion in total net assets by 20. [...] Contagion to ETF primary markets Because of the large presence of investment funds in the ETF market, it is plausible that ETF sales by investment funds had a material impact on primary ETF flows. [...] At the same time, they were passing-on the increased liquidity demand to the ETFs and ultimately to the liquidity providers in underlying securities markets. [...] www.suerf.org/publications/ SUERF Policy Brief, No 1007 5 Passing on the hot potato: the use of ETFs by open-ended funds to manage redemption requests About the authors Lennart Dekker is a Policy Advisor in the Financial Stability Division at the De Nederlandsche Bank. [...] Otto-Wagner-Platz 3 focus of the association is on the analysis, A-1090 Vienna, Austria discussion and understanding of financial The views expressed are those of the author Phone: +43-1-40420-7206 markets and institutions, the monetary (s) and not necessarily those of the instituti- www.suerf.org • suerf@oenb.at economy, the conduct of regulation, super- on(s) the author(s) is/are affiliated with.
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