The Instrument Builder platform streamlines the issuance of digital financial assets, offering a fast, customisable process. Assets can be tokenised and traded efficiently across the network. Mesh, through its token creation services, facilitates the creation and transfer of both traditional and new digital assets.
Build rights to ETF
As an Issuer of an instrument, you can create an ETF that represents the rights to your existing Exchange Listed Financial Instrument. This is traded as the rights to a financial instrument that exists in the securities universe. The digital instrument will reference an instrument that references an existing portfolio currently being traded. The process works as follows:
Step 1: Navigate to the Issuance Hub.
Step 2: Select to “Build New” instrument.
Step 3: Select the token class as “Rights to An Instrument”.
Step 4: Complete the Rights to Instrument, Reference Instrument and the Asset Exposure, choosing the instrument type as “ETF”, adding supporting documents and media as desired.
The input fields referenced above are further described in the following table:
Instrument Builder Heading | Input Field | Description |
|---|
Rights to Instrument | Instrument Type | The instrument Type selects the type of instrument to be built, either an ETF, or an ENT. Enter defining details of the new rights to an instrument that you are building. This will allow you to trade rights to an existing instrument on Mesh. |
Issue Date | The issue date stipulates the date that the Issuer schedules the Instrument to be issued. |
Valuation Stablecoin | Stablecoin by which the present value of the instrument is given and the Issuer will receive settlement in. |
Owner Group | This field specifies the owner of the Instrument being built. Issuers can create an instrument for all groups in which they have an issuer role. |
Maturity Date | The maturity date stipulates the date that the Instrument matures. |
Max Units to Issue | This is the maximum number of tokens the user is looking to mint on Mesh. |
Reference Instrument | Instrument Name | Name of the company issuing the reference instrument. |
Credit Rating | Rating that is issued by a rating agency representative of the credit risk carried by the Issuer of the instrument. |
Management Fee | The fee charged by Issuer for reference instrument management / administration (not Mesh fee) expressed as a % or a currency amount of the value of reference portfolio. Decimals: 2 after comma. |
Asset Exposure | Investor Profile | The profile of the investor that would be the market for such a product based on investment goals, duration, returns, liquidity, investing knowledge and risk appetite. (Conservative, Balanced or Aggressive) |
Risk Profile | Issuer determined risk capacity/ tolerance associated with this instrument based on the investment asset allocation of the instrument ranked from Low Risk to High Risk. |
Country Allocation | This field stipulates the asset’s exposure allocation to a specified geographical location. |
Holdings | The underlying constituents of the instrument expressed in percentage weighting linked to the selected holding. |
Sector Allocation | The mix of sectors/ Industries within a fund or portfolio that can be added from an available list (like agri, engineering, information technology, etc.). |
Returns Log | Returns will be captured as a percentage value for a particular month and year. The user may also capture an annual return for a particular year. |
Step 5: Save your instrument Draft as you proceed.
Step 6: Once you have confirmed that all the details are correct, select “ISSUE”.
Step 7: You will be navigated to the instrument list where your new Instrument will be listed.
