Charles Schwab (SCHW) and Fidelity Investments are preventing clients from investing in money-market exchange-traded funds on their platforms, Bloomberg reported Monday, citing the companies.
The firms are blocking purchases of three ETFs from BlackRock (BLK) and Texas Capital (TCBI), which track money-market securities like Treasury bills in an ETF format, the report said.
The move comes days after Schwab filed plans to introduce its government money-market ETF, the report said.
Texas Capital told the outlet that the firms' decision to block its MMKT money market ETF is "unfortunate and surprising." A BlackRock spokesperson was quoted as saying that the company's iShares ETFs provide access to "professional grade cash management strategies in the convenience of the ETF wrapper, providing additional choice and flexibility for investors."
Charles Schwab, Fidelity Investments, and Texas Capital did not immediately reply to MT Newswires' request for comments while BlackRock referred to a statement found in the Bloomberg report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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