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

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

Rating:Bats Shakes Up Its ETF Support Program Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, September 2, 2016

Bats Shakes Up Its ETF Support Program

News summary by MFWire's editors

One of the exchanges is transforming the way it attracts and supports ETF business. ETF shops and market makers alike should take heed.

Bryan Harkins
BATS Global Markets, Inc.
Executive Vice President, Head of US Markets
Yesterday Kansas City-based Bats Global Markets switched up its Issuer Incentive Program for exchange-traded products (including ETFs) from directly paying the ETF shops themselves to directly paying the lead market makers who support ETFs' liquidity.

Barron's, Bloomberg, ETF.com (which Bats bought this spring), and ETF Trends all covered Bats' ETF incentives changeup.

Bats launched version 1.0 of the incentive program in October 2015, offering to pay ETF shops up to $400,000 per year, per ETF, for listing the ETF on Bats. The scale was based on consolidated average daily volume, with the top payments reserved for issuers offerings ETFs with Consolidated Average Daily Volume (CADV) of 35 million or more shares.

Now version 2.0 of Bats' incentive program uses the same trading scale, with the same breakpoints and same payment levels; yet now the payments go to the lead market makers who ensure liquidity and low bid-ask spreads for the ETFs.

"In order for market makers to better support trading in ETPs across a varying liquidity spectrum, they should be rewarded with incentives generated from the most liquid of products," states Bryan Harkins, executive vice president and head of U.S. markets at Bats. "That allows them, in turn, to better support newer and less liquid ETPs with higher quality markets as issues look to garner more assets."

Harkin tells Bloomberg that none of the 98 ETFs listed on Bats now currently hit that top, $400,000-per year incentive level, though some trade enough that their lead market makers would qualify for $50,000 a year in incentives. Those 98 ETFs come from 15 ETF shops.

Bats claims to account for 28 percent of all new U.S. ETF listings year-to-date and 23.8 percent of all ETF trading volume last month. Bats landed its first ETF primary listing in January 2012. 

Edited by: Neil Anderson, Managing Editor


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
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
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. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use