NYSE Arca Unveils Exchange Traded Products Incentive Program
10 Giugno 2013 - 7:32PM
Business Wire
NYSE Euronext (NYX) announced that it has received approval from
the U.S. Securities and Exchange Commission (SEC) to launch the
NYSE Arca Exchange Traded Product Incentive Program (IP). This new
12 month pilot program offers an alternative for incentivizing lead
market makers (LMM) to be the primary market maker in certain
exchange traded products (ETPs) selected by issuers.
NYSE Arca is the only Exchange in the U.S. to offer this
optional IP, which provides greater certainty to ETP issuers that
the LMM will receive the economic incentive tailored to their
specific ETP. In return, the LMM is required to meet
industry-leading quoting obligations and requirements aimed at
improving market quality. The IP pilot program will launch in the
second half of 2013.
“At NYSE Euronext, we believe LMMs play a crucial role in
promoting a consistent, fair and orderly market in all securities,
particularly ETPs,” said Laura Morrison, SVP Global Index and
Exchange Traded Products. “We are proud to offer our issuers this
optional Incentive Program, proving that NYSE Arca is committed to
providing ETP market participants with the best service and
innovative market structure to meet their ETP listing and trading
needs.”
Through the NYSE Arca ETP Incentive Program, issuers can select
five existing ETPs in addition to any new ETP listed for inclusion
in the program. Issuers will immediately benefit from having
oversight of an obligated liquidity provider assigned to their
newly listed ETPs, resulting in improved market quality with
narrower spreads, increased quote depth and reduced execution costs
for investors trading the products.
As an extension of the current LMM program, this new pilot
program offers LMMs a predetermined IP payment for the months that
they meet their obligations in place of the enhanced rebate
structure for trade executions. The increased LMM obligations
include a percentage of time at the national best bid and offer
requirement, a maximum spread and minimum depth requirement, and a
layering requirement which requires the LMM to display size within
two percent of the national best bid and offer.
For more information about NYSE Arca Exchange Traded Products,
please click here.
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial
markets and provider of innovative trading technologies. The
company's exchanges in Europe and the United States trade equities,
futures, options, fixed-income and exchange-traded products. With
approximately 8,000 listed issues (excluding European Structured
Products), NYSE Euronext's equities markets - the New York Stock
Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca -
represent one-third of the world's equities trading, the most
liquidity of any global exchange group. NYSE Euronext also operates
NYSE Liffe, one of the leading European derivatives businesses and
the world's second-largest derivatives business by value of
trading. The company offers comprehensive commercial technology,
connectivity and market data products and services through NYSE
Technologies. NYSE Euronext is in the S&P 500 index. For more
information, please visit: http://www.nyx.com.
nyx.com
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