Exchange-Traded Fund (ETF) Intraday Pricing (INAV) Process
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Exchange-Traded Fund (ETF) Intraday Pricing (INAV) Process
Optimize ETF pricing with our comprehensive INAV process, ensuring accurate intraday indicative values and seamless market dissemination.
1
Identify the ETF for which INAV is to be calculated
2
Gather real-time price data of underlying assets
3
Update the ETF basket composition file in the system
4
Upload the weights of individual securities in the ETF basket
5
Multiply each security’s price with its weight in the ETF
6
Sum the results to get the intraday indicative value
7
Check for any corporate actions affecting the underlying securities
8
Adjust the calculation for corporate actions if necessary
9
Approval: Portfolio Manager
10
Calculate the estimated NAV per ETF share
11
Update the INAV in the system for dissemination
12
Disseminate the INAV to the stock exchange and the market maker
13
Confirm the transmission of INAV to the market participants
14
Monitor the price discovery process of the ETF's shares in the market
15
Compare the disseminated INAV with the market price of ETF shares
16
Approval: Senior Trader
17
Identify and report any substantial discrepancies between calculated INAV and market price
18
Store the INAV calculation details for record-keeping
19
Draft a daily report outlining the INAV process
20
Approval: Compliance Officer
Identify the ETF for which INAV is to be calculated
This task involves identifying the specific ETF for which the Intraday Net Asset Value (INAV) is to be calculated. The INAV represents the estimated value of each share of the ETF during the trading day. It is a crucial step in monitoring the performance and pricing of the ETF. The desired result is to accurately identify the ETF that requires INAV calculation.
Gather real-time price data of underlying assets
This task requires gathering real-time price data of the underlying assets of the ETF. The underlying assets are the individual securities or other financial instruments that make up the ETF. The real-time prices of these assets are essential for calculating the INAV of the ETF. The desired result is to have up-to-date and accurate price data for all underlying assets.
Update the ETF basket composition file in the system
Updating the ETF basket composition file in the system is necessary to reflect any changes in the composition of the ETF. The ETF basket composition file includes the details of the individual securities and their respective weights in the ETF. The desired result is to have an updated and accurate ETF basket composition file in the system.
Upload the weights of individual securities in the ETF basket
This task involves uploading the weights of the individual securities in the ETF basket. The weights represent the proportion of each security's value in the overall value of the ETF. The desired result is to have the accurate weights of all individual securities in the ETF basket.
Multiply each security’s price with its weight in the ETF
In this task, each security's price is multiplied by its weight in the ETF. This calculation is performed to determine the contribution of each security to the overall value of the ETF. The desired result is to have the calculated value for each security's contribution to the ETF.
Sum the results to get the intraday indicative value
This task involves summing the calculated values of each security's contribution to the ETF to obtain the intraday indicative value (INAV). The INAV represents the estimated value of each share of the ETF during the trading day. The desired result is to have the accurate INAV for the ETF.
Check for any corporate actions affecting the underlying securities
This task requires checking for any corporate actions affecting the underlying securities of the ETF. Corporate actions can include events such as dividends, stock splits, mergers, or acquisitions that may impact the value of the underlying securities. The desired result is to identify any corporate actions that may require adjustment in the INAV calculation.
1
Dividends
2
Stock Splits
3
Mergers
4
Acquisitions
5
None
Adjust the calculation for corporate actions if necessary
Approval: Portfolio Manager
Will be submitted for approval:
Identify the ETF for which INAV is to be calculated
Will be submitted
Gather real-time price data of underlying assets
Will be submitted
Update the ETF basket composition file in the system
Will be submitted
Upload the weights of individual securities in the ETF basket
Will be submitted
Multiply each security’s price with its weight in the ETF
Will be submitted
Sum the results to get the intraday indicative value
Will be submitted
Check for any corporate actions affecting the underlying securities
Will be submitted
Adjust the calculation for corporate actions if necessary
Will be submitted
Calculate the estimated NAV per ETF share
Update the INAV in the system for dissemination
Disseminate the INAV to the stock exchange and the market maker
Confirm the transmission of INAV to the market participants
Monitor the price discovery process of the ETF's shares in the market
Compare the disseminated INAV with the market price of ETF shares
Approval: Senior Trader
Will be submitted for approval:
Calculate the estimated NAV per ETF share
Will be submitted
Update the INAV in the system for dissemination
Will be submitted
Disseminate the INAV to the stock exchange and the market maker
Will be submitted
Confirm the transmission of INAV to the market participants
Will be submitted
Monitor the price discovery process of the ETF's shares in the market
Will be submitted
Compare the disseminated INAV with the market price of ETF shares
Will be submitted
Identify and report any substantial discrepancies between calculated INAV and market price
Store the INAV calculation details for record-keeping
Draft a daily report outlining the INAV process
Approval: Compliance Officer
Will be submitted for approval:
Identify and report any substantial discrepancies between calculated INAV and market price
Will be submitted
Store the INAV calculation details for record-keeping
