A 5444
P&S 5014
July 12, 2002
TO: ALL PARTICIPANTS
ATTENTION: MANAGING PARTNER/OFFICER; OPERATIONS PARTNER/OFFICER; MANAGER P&S DEPARTMENT; MANAGER DATA PROCESSING DEPARTMENT
SUBJECT: NSCC TO BEGIN DISTRIBUTING OF DOMESTIC FIXED INCOME EXCHANGE TRADED FUND PORTFOLIOS
On July 15, 2002, the National Securities Clearing Corporation (NSCC) will begin distributing domestic fixed income index share baskets on its domestic Portfolio Composition file. These products will not be eligible for the NSCC create and redeem process. Creates and redeems will be done through the various Index Receipt Agents. Fixed income portfolios will be disseminated over the existing domestic Portfolio Composition file as all domestic exchange traded funds are today.
Four new fixed income iShares will be included on NSCC’s domestic index security processing system and will trade on the American Stock Exchange. iShares securities represent ownership in open-ended investment companies registered under the 1940 Act established to accumulate and hold portfolios of common stocks intended to track the price performance and dividend yield of various well-known indices. Information pertinent to the four fixed income iShares follows:
|
Index Share Name |
Trading Symbol |
CUSIP |
First PCF Date |
|
iShares Lehman 1-3 Year Treasury Bond Fund |
SHY |
464287457 |
July 15, 2002 |
|
iShares Lehman 7-10 Year Treasury Bond Fund |
IEF |
464287440 |
July 15, 2002 |
|
iShares Lehman 20+ Year Treasury Bond Fund |
TLT |
464287432 |
July 15, 2002 |
|
iShares GS $InvesTops Corporate Bond Fund |
LQD |
464287242 |
July 15, 2002 |
Changes to the Domestic Index Share System for the Inclusion of Fixed Income securities follow:
Add Fixed Income Securities to the Domestic Index Share System
To accommodate the distribution of fixed income basket portfolios, NSCC
has added fixed income securities to its Index Share application, thus allowing
Distributors/Index Receipt Agents to submit fixed income security portfolios.
Distribute Fixed Income Securities Baskets Using the Existing Domestic
Portfolio Composition File
Fixed income exchange traded funds will be included in the existing
domestic Portfolio Composition File, AutoRoute numbers 02260294 and 02260293,
for MRO and print report, respectively.
The Symbol Field for the Basket Components on the Domestic Portfolio
Composition will be Blank for Fixed Income Securities
Since the fixed income components do not have trading symbols, the
symbol field will be left blank.
Block Create and Redeem Process for Fixed Income Exchange Traded Funds
Creates and redeems will be blocked from NSCC processing for fixed
income exchange traded funds. For more information on becoming an Authorized
Participant and creating and redeeming fixed income exchange traded funds, call
the Index Receipt Agent and or Distributor listed on the important notice
introducing the individual fixed income products.
A complete record layout for the domestic exchange traded fund Portfolio Composition File is available on NSCC’s file format Website http://formats.nscc.com.
Useful Information:
general information: 1-800-474-2737 or www.ishares.com
- iShares
To place creation/redemption orders, or to become an iShares Authorized Participant: 1-888-276-2328 Index security general information URL: www.amex.com or call: 1-800-THE AMEX
If you have any questions regarding NSCC’s procedures for distributing fixed income index share product portfolios, please contact your Relationship Manager or call (212) 855-4155. If you have additional questions, please call the undersigned at (212) 855-5699.
Elena Staloff
Director, Product Marketing and Development