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Expanding Gold ETF Cross Listings

HK ETF

Case Study

Gold ETFs

Challenge

A leading financial services provider specialising in gold investment products aimed to enhance its Gold ETF platform by introducing new cross listings in Hong Kong (HK). This initiative was part of a broader strategy to expand market reach, improve accessibility for investors in different regions, and ensure compliance with local regulatory requirements. The project required updates to the existing Gold ETF website, integration of new data feeds, and coordination across multiple stakeholders to meet a tight go-live timeline.

The client faced several challenges in delivering the Gold Cross Listings project:

  • Regulatory Compliance: The need to secure an Internet Content Provider (ICP) license for China and ensure its display on all relevant website pages, with unclear ownership of the process.
  • Data Integration: Incorporating new end-of-day (EOD) and intraday data for the HK listings from FactSet, requiring amendments to existing data contracts and testing of new tickers.
  • Timeline Pressures: Achieving the go-live date, necessitated rapid discovery, development, and testing phases, with key milestones needing sign-off within weeks.
  • Stakeholder Coordination: Aligning multiple parties, including internal teams, data vendors (FactSet, ICE), and external auditors, to ensure seamless delivery and compliance with audit requirements.

Action

The project aimed to:

  • Successfully launch new HK cross listings on the Gold ETF website.
  • Integrate FactSet data for EOD and intraday updates, ensuring accurate NAV and IOPV calculations using appropriate FX rates and timings.
  • Secure necessary regulatory approvals, including the ICP license, and clarify process ownership.
  • Enhance the legacy internal systems infrastructure to support the new listings while mitigating risks associated with unsupported technology.
  • Deliver the project by listing date, with all stakeholder sign-offs and testing completed.

Implementation Approach

The project was structured into key phases, with milestones and responsibilities clearly defined. 

Key activities included:

  • Discovery Phase: Completed successfully, with deliverables and timelines shared with the client.
  • Development Phase: Focused on enhancing legacy internal systems, integrating FactSet data, and preparing website content, with weekly tri-party calls, to ensure alignment.
  • Testing Phase: Included QA testing of IOPVs and NAV files, leveraging existing data, with full testing of live HK exchange data planned post-listing.
  • Go-Live Phase: Targeted for six weeks following project approval.

Solution

To meet these objectives, a comprehensive solution was implemented, leveraging strategic planning, technical expertise, and stakeholder collaboration:

  1. Discovery and UX Agreement:
    • Conducted a 15-day discovery phase to finalise screen mockups, data requirements, and website changes, ensuring alignment with existing listing displays.
    • Developed a detailed statement of work (SOW) and timeline, submitted for client sign-off prior to work commencing.
  2. Data Integration:
    • Secured access to FactSet data for HK listings, including EOD and intraday updates, with amendments to existing contracts.
    • Utilised ICE data via FactSet for NAV FX adjustments and IOPV calculations, standardising FX rate timing around 4PM New York time across all cross listings.
    • Replicated processes from a previous  cross-listing project to streamline data integration and testing.
  3. Regulatory and Compliance:
    • Clarified ownership of the ICP license process, with the client’s legal and capital markets teams managing registration, ensuring compliance across all website pages.
    • Prepared for  the annual fund audit, by proactively addressing potential requirements.
  4. Testing and Go-Live:
    • Conducted QA testing for IOPVs prior to listing, using existing data to simulate HK listings, with a switchover planned for the go-live weekend.
    • Ensured translations for HK Chinese pages were completed and approved, aligning with client timelines.

Successful Delivery

The Gold ETF Cross Listings project was successfully delivered after six weeks of development and testing meeting all objectives:

  • Website Enhancements: The HK cross listings were launched on the Gold ETF website, displayed consistently with other listings, with client-approved screen mockups and translations implemented.
  • Data Integration: FactSet data for HK listings was fully integrated, with NAV and IOPV calculations standardised using 21:00 UTC FX rates, approved by the client.
  • Regulatory Compliance: The ICP license was secured and displayed on all relevant pages, with process ownership clarified and audit requirements met.
  • Technical Stability: The legacy system infrastructure was enhanced to support the new listings, with interim cybersecurity measures implemented, ensuring operational stability.
  • Timeline Adherence: The project met the go-live date, with all testing, sign-offs, and stakeholder approvals completed on schedule.

Conclusion

The successful delivery of the Gold ETF Cross Listings project demonstrates the power of strategic planning, technical expertise, and stakeholder collaboration in overcoming complex challenges. The key benefits for expanding the cross listings included:

  • Expanded Market Reach: The HK cross listings broadened the platform’s accessibility, attracting new investors in the region.
  • Data Accuracy: Standardised FX rate timing and FactSet data integration ensured reliable NAV and IOPV calculations, enhancing investor trust.
  • Regulatory Compliance: Secured ICP approval and audit readiness, mitigating legal and compliance risks.
  • Operational Efficiency: Replicated processes from prior projects streamlined delivery, saving time and resources.
  • Risk Mitigation: Interim measures addressed legacy system vulnerabilities, paving the way for future infrastructure upgrades.

By meeting tight timelines, ensuring compliance, and enhancing the platform’s functionality, the project positioned the client for continued growth in the global gold investment market. This case study underscores 542 Digital's ability to deliver high-stakes projects under pressure, leveraging existing processes and mitigating risks to achieve exceptional outcomes.