NYSE and Nasdaq plan ETF pilot programs

By Staff | August 8, 2013 | Last updated on August 8, 2013
1 min read

The New York Stock Exchange and Nasdaq are preparing pilot programs to promote “better behaviour” from top ETF market makers, reports the Financial Times.

Read: The market maker’s role in the “ETF ecosystem”

“[L]ead market makers are supposed to quote bid and offer prices for ETF shares even in times of market stress. But on May 6, 2010 — the day of the flash crash — they were nowhere to be found,” notes the report.

NYSE’s incentive program “will allow ETF issuers to pay lead market-makers $10,000 to $40,000 per ETF per year, regardless of how much the fund is traded. At Nasdaq, ETF issuers are looking to offer $50,000-$100,00[0] to top market makers in a product if certain quoting requirements are met.”

Read the rest here.

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Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.