The launch happens as BATS’ ETP business has grown to account for more than 30% of its trading business in the United States.
BATS Global Markets unveils ETF Marketplace
BATS Global Markets (BATS), an international operator of exchanges and provider of services for financial markets, today announced the launch of its ETF Marketplace, a market specifically structured and designed for ETF issuers and their investors.
The move highlights the company’s commitment to the listing and trading of exchange-traded products (ETP). The ETP business now accounts for more than 30% of the BATS trading business in the United States.
The launch comes just a week after BATS announced the appointment of Robert J. Marrocco, who has a substantial experience in the ETP area, as its Director of Listings.
To incentivize trading on the new marketplace, BATS introduced BATS ETF Issuer Incentive program and the BATS Lead Market Maker program.
“As the largest market for exchange traded funds, BATS is uniquely positioned to change the game for issuers, investors and market makers,” said BATS Global Markets CEO Chris Concannon.
The BATS Issuer Incentive Program is a payment program that allows an issuer to benefit from listing on BATS by providing an annual payment for each product listed on BATS with Consolidated Average Daily Volume (CADV) greater than 1 million shares per day.
The BATS Lead Market Maker (LMM) program is a rewards-based program that incentivizes Market Makers for their participation in BATS-listed ETPs. LMMs get larger incentives for providing liquidity and lower costs for removing liquidity in their assigned ETPs. Also, BATS LMMs receive additional economic incentives for making markets in additional ETP products listed on BATS.
The new BATS ETF Marketplace website offers details about the incentives programs and information about the ETP listing services provided by BATS.
To view the official announcement from BATS Global Markets, click here.
David Hobart
David Hobart is Managing Director of FinAffiliates Limited, the UK media group behind LeapRate, AskTraders and a network of more than 30 financial and trading titles published across several languages and regulated markets. He writes on the commercial side of the industry: broker marketing, client acquisition, affiliate strategy and the editorial standards that hold it together. He is based in North Norfolk.
