ETFxChange for Retirement Plans

ETFxChange is a platform developed by Mid Atlantic Financial Platforms, Inc. for Mid Atlantic Trust Company so that retirement plans have easy access to ETFs along side mutual funds. Because most defined contribution processes and systems have been designed around processing mutual funds, using ETFs in retirement plans has been either too expensive, or too operationally burdensome. The Mid Atlantic ETFxChange solution lifts these barriers and allows retirement plans to invest in ETFs using the processes and systems already in place for mutual funds.

Mid Atlantic Financial Platforms, Inc. is proud to be a Preferred Network of iShares ETFs where alongside mutual funds is access to all 175 + iShares ETFs. Visit www.ishares401k.com to learn more about the value of ETFs in a 401(k) plan.

Frequently Asked Questions by Third Party Administrators

What paperwork is required from me?
ETFxChange is part of the Mid Atlantic Trust Company trading platform, so you must have an Access Agreement with MATC. In addition, you must sign the ETFxChange Platform Acknowledgement.

What paperwork is required from the plan sponsor?
There is no additional paperwork required from the plan. You will complete the normal B-50 worksheet, noting the CUSIP(s) of the ETF(s) to be used by the plan.

How long does it take to open the fund account?
All ETF shares trading on this platform are held in one master (or omnibus) Mid Atlantic Trust account. Each plan’s shares are held in book entry form at Mid Atlantic. This structure allows for same day ETF fund account opening, but typically allow 24 hours.

How are ETFs traded under ETFxChange?
We have focused on making ETFs trade like normal no-load mutual funds. This means one price per day for positions and trades, with neither commissions, nor fees to track. ETF orders are sent to us in the same file as your mutual fund trades. You receive confirms, positions, prices and dividend reinvestments in the same files and formats you currently utilize for your mutual funds. All trades are confirmed and settled at shares x closing price (or dollars / by closing price for dollar certain trades).

Do you support regular and late day processing for ETFs?
Yes. We currently have two cutoff times, 2:30pm EST and 2:30am EST. Trades we receive by 2:30pm EST are placed during market hours and are executed at the 4:00pm EST closing price. Trades placed after 2:30pm EST, but before 2:30am EST, are also executed at the 4:00pm EST closing price under a proprietary agreement with our execution partner. Keep in mind, with late day processing, the executing brokers on the street may incur market risk with the processing of these trades. To compensate the executing brokers, Mid Atlantic Trust Company charges a slight premium for this feature. It is the sole right of the executing brokers to eliminate late day processing rights of ETFs. If this were the case, then your record keeping system will have to submit its orders by the earlier cutoff time. Of course, regardless of which window is used to place orders, the participant investment decision must always be made before market close.

When are settlement funds available?
As is the case with mutual funds, ETF settlements are available around 2pm EST on T+1.

Is ETF data available through Mid Atlantic’s Fund Research Tool?
Yes, all ETFxChange ETFs are available through our research tool with the same available data fields.

What are the fees for the ETFxChange and how are they billed?
The ETFxChange platform fee is a competitive asset-based fee, with one rate for pre-market close orders and a higher rate for late day processing orders. This fee is charged on your Mid Atlantic invoice in addition to any trading, custody, directed trustee and cashiering fees.

ETFxChange is provided by Mid Atlantic Financial Platforms and is not offered by BlackRock Institutional Trust Company, N.A. ("BTC") or its affiliates. Since every client's circumstances and requirements are different, you should do your own due diligence and make your own assessment.

iShares is a registered mark of BlackRock Institutional Trust Company, N.A. ("BTC"). BTC has licensed certain trademarks and trade names of BlackRock to Mid Atlantic Financial Platforms.  ETFxChange is not sponsored, endorsed, sold, or promoted by BTC or any of its affiliates (collectively "BlackRock"). BlackRock makes no representations or warranties to the owners of ETFxChange or any member of the public regarding the advisability of investing in ETFxChange. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of ETFxChange.

Mid Atlantic Trust Company is independently owned and operated. Mid Atlantic Financial Platforms, Inc., which was recently merged into Mid Atlantic Capital Group, Inc. maintains an operating agreement with Counsel Trust Company, dba Mid Atlantic Trust Company to perform its institutional retirement plan reporting and administration.