Fineqia International Inc (CSE:FNQ, OTC:FNQQF) announced a partnership between its subsidiary Fineqia AG and ETFbook, a data analytics firm, to enhance the operational efficiency of its exchange-traded note (ETN) business.
Under this partnership, ETFbook will act as the Portfolio Composition File (PCF) Calculation Agent for Fineqia AG's ETNs, the company said in a statement.
ETFbook's role is to calculate the PCF, a crucial component in ensuring accurate asset allocation during the ETN creation and redemption process.
This ensures market participants have up-to-date information about the underlying assets, which is essential for informed investment decisions.
"The accuracy and reliability of the PCF calculation are pivotal to the smooth operation of our ETN products," Fineqia’s chief financial officer Warren Sergeant said.
"ETFbook's experience and expertise in the analytics and financial markets sector make them an ideal partner to support the operational efficiency of our ETN."
Pawel Janus, ETFbook CEO, expressed enthusiasm over working with Fineqia to bring this digital asset solution to a broader client base.
"The advancing sophistication of ETN investment opportunities requires robust technological foundation to ensure up-to-date and accurate reflection of the portfolio allocation so that both primary and secondary markets may result in efficient pricing and operational resilience,” Janus said.
The partnership coincides with Fineqia AG's recent milestone of issuing the world's first ETN utilizing underlying crypto assets in decentralized finance. The Fineqia FTSE Cardano Enhanced Yield ETN launched on January 24 on the Vienna Stock Exchange and was subsequently listed on the Stuttgart Stock Exchange on March 10.
The partnership agreement between Fineqia AG and ETFbook took effect with the ETN's launch. The terms of the agreement remain confidential.