Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Nasdaq Wins Approval for its ETF Market Maker Plan Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, March 26, 2013

Nasdaq Wins Approval for its ETF Market Maker Plan

Reported by Tommy Fernandez

Score one for the ETF market makers.

Just one day after the NYSE revived its proposal for its own market maker incentive plan, rival exchange Nasdaq had its own proposed program finally approved by the SEC.

The Nasdaq program, called the Market Quality Program, would charge ETF sponsors a fee for allowing their funds to be promoted by a group of approved market makers who would provide quotes and liquidity for the products.

The sponsors will be charged a basic annual fee of $50,000 to participate in the program (with the fees paid on a quarterly basis), plus additional fees for each product added to the program. The total amount billed to any one ETF sponsor will not go beyond $100,000 per year, and is paid in addition to other basic Nasdaq listing fees.

Meanwhile, the firms serving as market makers will be credited a pro-rated portion of these fees according to various factors like trading volume, spread, and so on.

Nasdaq had to go through a long, winding road to get approval, having filed the latest requests to change its rules to allow for the program on December 7, 2012 and then amended that request on December 20, 2012, (publishing the proposed rule change in the Federal Register on December 31, 2012). It amended the request again on Fedbaruy 7, 2013 and again the day after.

A previous iteration of the request weathered harsh industry criticism from industry participants on the SEC comment page.

Nasdaq plans to start the program out first as a one-year pilot.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use