Everything Stays in the Cloud with a Shielded Alpha℠ ETF
Cloud-Hosted & Turnkey
Generating the daily creation basket for a Shielded Alpha℠ ETF is rapid and efficient because it is a Microsoft Azure cloud-hosted service, ensuring high availability and security.
At the close of each day's trading, access the Shielded Alpha℠ service from a web browser or over the secure file transfer protocol (SFTP) to upload ETF portfolio data and initiate the process to generate the creation basket . Fund advisors can access the service themselves or in cooperation with their custodial bank or fund administrator.
Once ETF portfolio data is received, in seconds the Shielded Alpha℠ service generates the creation basket (a.k.a. portfolio composition file or PCF) used for next day's trading. The advisor's custodial bank or fund administrator then uploads the PCF to the National Securities Clearing Corporation (NSCC) where it is then disseminated out to the market, exactly as is done currently for fully transparent ETFs.
The Shielded Alpha℠ service is a true turnkey solution and implementation is rapid and simple. The service maps a streamlined workflow and navigation is easy and intuitive using simple drop down menus to capture ETF administrative and portfolio information, as well as supporting granular customization of the creation baskets. There's no requirement to purchase hardware or develop back office systems.
Encrypted & Secure
The Shielded Alpha℠ hosted service is highly secure and employs the latest encryption techniques. ETF portfolio data is encrypted at entry, in communication and at rest and is maintained in Microsoft data centers located only in the United States.
Encryption keys are unique to each fund advisor, ensuring that no third party, including Blue Tractor, can view portfolio data unless authorized by the fund advisor.
With the Shielded Alpha℠ ETF wrapper only a fund advisor and their authorized custodial bank/fund administrator knows the confidential portfolio holdings.
And with all workflow needed to generate the creation basket in the cloud, a fund advisor doesn't have to sign multiple non-disclosure agreements with third-party service providers (e.g. calculation agents, pricing verification agent and AP Representative accounts) and doesn't have to disseminate confidential portfolio information to them either on a daily basis.
The Shielded Alpha℠ ETF wrapper guarantees that a fund advisor maintains sole control of confidential portfolio data at all times.
Customizable & Blazing Fast
With a click of a mouse at the end of each day's trading, run the Shielded Alpha℠ hosted service. In seconds it returns next day's ETF creation basket that will be used by market makers for high frequency pricing, hedging and arbitrage and by authorized participants (APs) during creation and redemption transactions.
Whether a fund advisor manages one portfolio or hundreds, the scalable service readily accommodates any number of ETFs; upload ETF portfolio data individually or as a batch file using the secure file transfer protocol (SFTP).
And using the intuitive drop down menu options, a fund advisor can
further scramble the securities' weightings in the ETF creation basket when the fund is building a new portfolio position or exiting a position.
Additionally, advisors can individually customize the creation basket for every one of their ETFs in order to capitalize on opportunities to reduce trading costs and enhance tax efficiency during daily creation and redemption activity with APs; wholly unique benefits with the Shielded Alpha℠ ETF structure.