|
A# |
5667 |
|
P&S #: |
5237 |
|
DATE: |
August 26, 2003 |
|
TO: |
ALL PARTICIPANTS |
|
ATTENTION: |
MANAGING PARTNER/OFFICER; OPERATIONS PARTNER/OFFICER; MANAGER P&S DEPARTMENT; MANAGER DATA PROCESSING DEPARTMENT |
|
FROM: |
Peter Inguanta |
| SUBJECT: | NSCC TO INCLUDE AN ADDITIONAL DOMESTIC FIXED INCOME EXCHANGE TRADED FUND PORTFOLIO |
On August 26, 2003, the National Securities Clearing Corporation (NSCC) will include an additional domestic fixed income index share basket on its domestic Portfolio Composition file. As a reminder, these products will not be eligible for the NSCC create and redeem process. Creates and redeems will be done through the Index Receipt Agent responsible for iShares. Fixed income portfolios will be disseminated over the existing domestic Portfolio Composition file as all domestic exchange traded funds are today.
One new fixed income iShares [1] will be included on NSCC’s domestic index security processing system and will trade on the American Stock Exchange on or about September 15, 2003. Information pertinent to the additional fixed income iShares follows:
Index Share Name |
Trading Symbol |
CUSIP |
First PCF Date |
| iShares Lehman U.S. Aggregate Bond Fund |
AGG |
464287226 |
August 26, 2002 |
Reminder – The additional Features in the Domestic Index Share System for the Inclusion of Fixed Income securities is as follows:
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:
ØiShares general information: 1-800-474-2737 or www.ishares.com
Ø To place creation/redemption orders, or to become an iShares Authorized Participant: 1-888-276-2328
Ø 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) 855-5696.
Peter Inguanta
Director, Product Marketing and Development