Direxion Selects SS&C for ETF, Mutual Fund Distribution Services

Rhea-AI Summary

SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) has announced that Direxion, a leading provider of tradeable and thematic ETFs, has chosen SS&C ALPS Distributors for medallion distribution services for their ETF and mutual fund range. Direxion, managing over $40 billion in assets, will benefit from SS&C's comprehensive suite of Registered Fund Services. SS&C will act as the underwriter and distributor, handle FINRA compliance, review marketing materials, and support Direxion's distribution strategy.

This partnership allows Direxion to access SS&C's end-to-end service and distribution solutions, designed to enhance customer experience and streamline order flow with authorized participants. SS&C ALPS Distributors currently services more than 300 ETFs with over $1 trillion in assets under distribution across 47 trusts.

Positive

• SS&C secures a new client, Direxion, with over $40 billion in assets under management
• Expansion of SS&C's ETF and mutual fund distribution services
• SS&C ALPS Distributors now services over 300 ETFs with more than $1 trillion in assets under distribution

Negative

• None.

Insights

Financial Services Analyst

This partnership between Direxion and SS&C is a strategic move that could significantly impact both companies' market positions. For Direxion, with $40 billion in assets under management, this collaboration provides access to SS&C's extensive distribution network and compliance infrastructure. This could potentially lead to increased fund inflows and a wider investor base for Direxion's specialized ETF and mutual fund products.

For SS&C, adding Direxion to its client roster further solidifies its position in the ETF services market. With now over 300 ETFs and $1 trillion in assets under distribution, SS&C is strengthening its competitive edge in the financial services technology sector. This deal could potentially boost SS&C's revenue stream from its Registered Fund Services division, although the exact financial impact isn't disclosed.

Investors should monitor how this partnership affects Direxion's fund performance and SS&C's financial results in upcoming quarters to gauge its success and potential long-term value creation.

ETF Market Specialist

This partnership signifies a notable shift in the ETF landscape, particularly for leveraged and inverse products. Direxion, known for its niche in tradeable and thematic ETFs, is positioning itself for growth by leveraging SS&C's distribution prowess. This move could potentially increase the accessibility and popularity of Direxion's complex ETF offerings among sophisticated investors.

The collaboration also highlights the growing importance of robust distribution and compliance infrastructure in the ETF market. As regulatory scrutiny on complex ETFs intensifies, Direxion's choice of SS&C for its FINRA compliance and marketing review capabilities is strategic. This could enhance Direxion's ability to navigate regulatory challenges while expanding its product range.

For the broader ETF industry, this partnership underscores the trend of specialized ETF providers seeking partnerships with established service providers to scale operations and reach. It's a development that could spark similar alliances in the sector.

WINDSOR, Conn., Sept. 17, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that Direxion, a leading provider of tradeable and thematic ETFs, has selected SS&C ALPS Distributors to provide medallion distribution services to their ETF and mutual fund range. Direxion manages more than $40 billion in assets across a diverse suite of leveraged and inverse ETFs and mutual funds.

SS&C ALPS Distributors will act as the underwriter and distributor for issuance, redemption and distribution. SS&C will also handle FINRA compliance and continuing education requirements, review marketing and sales literature, and consult and support Direxion funds' distribution model and strategy.

"We are delighted to partner with SS&C to expand the distribution of our innovative funds," said Angela Brickl, President.  "As the markets continue to evolve, being able to deliver timely vehicles aligned with the shifting dynamics of the financial markets is our priority. SS&C's vast experience, high-touch service model and unique end-to-end service and distribution solutions can provide the support we need to reach a wide distribution network and grow our business."

By partnering with SS&C ALPS Distributors, Direxion will access a comprehensive suite of SS&C Registered Fund Services for mutual funds, interval funds, ETFs/ETPs, Closed-End Funds and Collective Investment Trusts (CITs). SS&C's end-to-end service and distribution solution is designed to drive an enhanced customer experience and efficient order flow with authorized participants. The highly efficient marketing collateral review process leverages best-of-breed technology facilitated by dedicated experts to expedite reviews. Robust broker-deal compliance and legal infrastructure will support Direxion's drive to provide leading leveraged and inverse investment vehicles to sophisticated investors.

"For over 30 years, our commitment to excellence in providing medallion distribution services has empowered asset managers to drive innovation and success in the dynamic ETF marketplace," said Neal Chansky, Head of SS&C Registered Fund Services. "We look forward to a strong partnership with Direxion to support their growth as they deliver new and innovative solutions to the marketplace."

SS&C ALPS Distributors now services more than 300 ETFs with more than $1 trillion in assets under distribution across 47 trusts. Services include FINRA registration, marketing review, ETF operations and agreements.

About Direxion

Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $42.9 billion in assets under management as of June 30, 2024. For more information, please visit www.direxion.com.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

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SOURCE SS&C

FAQ

What services will SS&C provide to Direxion for their ETF and mutual fund range?

SS&C ALPS Distributors will provide medallion distribution services, act as underwriter and distributor for issuance, redemption and distribution, handle FINRA compliance and continuing education requirements, review marketing and sales literature, and support Direxion's distribution model and strategy.

How much assets does Direxion manage and what types of funds do they offer?

Direxion manages more than $40 billion in assets across a diverse suite of leveraged and inverse ETFs and mutual funds.

What is the current scale of SS&C ALPS Distributors' ETF services?

SS&C ALPS Distributors services more than 300 ETFs with over $1 trillion in assets under distribution across 47 trusts.

How will the partnership with SS&C benefit Direxion (SSNC)?

The partnership will provide Direxion access to SS&C's comprehensive suite of Registered Fund Services, end-to-end service and distribution solutions, and support for their growth in delivering innovative investment vehicles to sophisticated investors.