The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

NYSE Arca Unveils Exchange Traded Products Incentive Program

<p class='bwalignc'> <i>Supporting the overall growth of the ETP marketplace</i> </p>

Monday, June 10, 2013

NYSE Arca Unveils Exchange Traded Products Incentive Program

13:32 EDT Monday, June 10, 2013

NEW YORK (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

Please follow us at:

Exchanges Blog

Facebook

LinkedIn

Twitter

Media:
Amsterdam
+31.20.550.4488
or
Lisbon
+351.217.900.029
or
New York
212-656-2411
or
Brussels
+32.2.509.1392
or
London
+44.20.7379.2789
or
Paris
+33.1.49.27.11.33
or
Investor Relations:
New York
212-656-5700
or
Paris
+33.1.49.27.58.60

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections