Pershing LLC, the clearing firm, prime broker and provider of solutions to registered investment advisors that is a unit of Bank of New York Mellon (NYSE: BK), could be the next big name to provide clients with access to select exchange traded funds on a commission-free basis.
“A top Pershing executive said Wednesday the firm is considering a commission-free trading platform for exchange-traded funds,” reports Trevor Hunnicutt for InvestmentNews.
News of Pershing’s potential foray into commission-free ETFs comes a week after it was reported that Raymond James is considering a similar move for RIAs that custody client assets with the firm. Raymond James is expected to unveil its commission-free ETF lineup in the coming days with a combined 120 funds from First Trust, AdvisorShares, ALPS Advisors and Greenhaven. First Trust is the sixth-largest U.S. issuer of ETFs while Maryland-based AdvisorShares is one of the largest issuers of actively managed ETFs. [Raymond James Tries its Hand at Commission-Free ETFs]
“Pershing offers clearing services to 811 broker-dealers and holds assets in custody for 562 mostly high-end RIA clients,” according to InvestmentNews.
If it moves forward with a commission-free ETF platform, Pershing’s offering, like Raymond James’, would be geared toward professional whereas other commission-free platforms have struck gold by being available to both advisors and retail investors.