Capital Markets: Is it really that critical to ETFs?

Capital Markets: Is it really that critical to ETFs?

Whether you have been in the ETF market for a while or are fairly new to the industry, many of us are fascinated by the unique world of Capital Markets with their nuances and another layer of lingo and acronyms that many find perplexing.

Over the course of this special video series we take a look at various practices in global capital markets including interviews with BetaShares, State Street Global Advisors, the London Stock Exchange, and Invesco – all who help us navigate this incredibly important part of the ecosystem.

We address the question of why the Capital Markets role is so critical to the ETF business, best ETF execution practices, how various markets differ from each other in trading behaviour, and if size matters when it comes to a Capital Markets team.

Capital Markets best practices with Invesco


In this kick-off video with Pasquale Capasso, Head of Capital Markets, Southern Europe and LatAm at Invesco, Pasquale addresses how a capital markets team is “very unique to ETF issuers” within asset management.

They are centrally positioned within the business through their interactions with both liquidity providers that support ETF products as well as clients and end-investors. In addition to increasing awareness around their product range, their role includes ensuring that their line-up of ETFs are well supported as well as liquid for their end clients.

And by working directly with the sales team and the clients to monitor the execution process, their team can help “identify the most cost-effective way of trading an ETF”.

And in terms of execution best practices, Pasquale points out three important elements including understanding “peculiar nuances of the underlying market that need to be taken into account” such as the underlying instrument liquidity and size of the trade.

Stay tuned for a deeper dive into the Capital Markets practices in Europe and Latin America.