##fs available, we can also see how it has evolved over the years. as you know the strategies which can be delivered through an etf offering is impressively wide being subject only to the important safeguard of the ucits requirements. over time, we have seen the trends in etfs seeking authorisation change considerably. these have moved from being simple market cap weighted index 1 / 6 bis - central bankers'speeches tracking etfs to a full complement of strategies – a lot of them index based which reflect investor needs. ranging from so - called " smart beta " etfs, to thematics, to etfs delivering volatility or commodity exposure. we have also seen other etf products often tailored towards the latest topic of focus. present today, a prevailing trend is the rise in actively managed etfs seeking authorisation. some factors behind this include ease of access for investors, investor demand for targeted active strategies, fee compression and the ability to capitalise on existing scale by the creation of an etf share class to facilitate an additional distribution strategy. we are seeing etf providers continuing to adapt to changing demands and a changing environment to serve investor needs. as a regulator, the central bank must also be cognisant of the changing environment that we all operate in. i am aware that portfolio transparency is an important issue that has been raised by industry, particularly in relation to active etfs and for further innovation in the sector. while this is still a relatively small part of the market, we note the increasing interest in europe in these products. as a leader in europe for etfs, the central bank is open to engaging with industry to develop a proportionate and effective approach to different models of portfolio transparency in our domestic framework. we are likely to settle on a principles based approach rather than focusing on one particular model. another topic that garnered interest recently is the move of us securities settlement to t + 1. in the lead up to implementation of the new settlement requirement, which became effective on 28 may 2024, there was much discussion about its potential impact on etfs. this was particularly focused on ucits cash and borrowing limit breaches. there was engagement on the topic at both an eu and local level. locally, we engaged with industry to ascertain preparedness for the new settlement cycle and to inform our view on potential impacts or risks. we saw that much of industry is preparing for this change and that t + 1 is already a feature of many primary market settlement cycles. this would

listened to industry feedback on this point and engaged extensively at a european level in relation to it. as a result, we will be converging our approach with other fund domiciles and will shortly update our ucits q & as to clarify the position. in future, the ucits etf identifier can be included at the level of a sub - fund or a share class. this will provide greater clarity for fund managers and investors, particularly where the fund has both listed and unlisted share classes. future let me now turn to the future of etfs. i would like to discuss how technology will factor into the development of the sector and how retail investment can be better harnessed in europe. it is clear that technology will continue to be a big driver of change for the etf sector. as technological advances are made, we should see the etf ecosystem become more efficient. for example, tokenisation is something which has the potential to speed up settlement cycles and increase efficiency and liquidity of trading in assets. in addition to this, there are potential benefits to investors in terms of ease of access to financial products and lower costs. at the central bank, we are supportive of understanding how tokenisation and related technology can bring benefits to both firms and investors. at an international level, engagement is ongoing with policy makers to assess financial asset tokenisation and its associated risks and challenges. we have engaged with the funds industry to explore pathways and the potential of tokenisation for investment funds, in particular to understand how tokenisation will sit within the existing regulatory framework. we look forward to continued engagement with industry on this topic as the sector and the technology evolves. collaboration between industry and policy makers will be essential to moving this forward. advances in digitalisation will also lead to efficiencies and benefits for firms and investors. one of the benefits is that it allows easier access for investors to financial products, in particular retail investors. we have seen a rapid evolution in terms of distribution methods. this opens up possibilities both for managers and for retail investors. managers are gaining access to new target markets, while investors benefit 3 / 6 bis - central bankers'speeches from a multitude of different investment options. any one of us can use our mobile phones to gain immediate access to a large range of different asset classes. and while we acknowledge that there are many benefits to easier retail investment access, it is not without its risks and challenges. we must consider and keep pace with the evolving manner in which