NYSE Arca Expands Market Making Program for ETPs to Deliver Deeper Liquidity

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The FINANCIAL — The New York Stock Exchange, a subsidiary of Intercontinental Exchange on February 18 announced the addition of Royal Bank of Canada’s RBC Capital Markets as a Lead Market Maker (LMM) on NYSE Arca, deepening the pool of liquidity for Exchange Traded Products (ETPs).

As the premier exchange for ETPs, NYSE Arca’s lead market making program seeks to ensure a superior trading experience for issuers and investors by requiring NYSE Arca LMMs to adhere to defined quoting and performance obligations. The result of this strategy is enhanced liquidity, improved prices and lower volatility. RBC Capital Markets joins 18 LMMs on NYSE Arca, according to Intercontinental Exchange.

“The NYSE is committed to providing a superior listing and trading experience for our issuers, and the addition of RBC Capital Markets as a Lead Market Maker will help ensure we continue to provide enhanced liquidity and superior market quality,” said NYSE Head of ETPs Douglas Yones. “With an innovative program to incent liquidity in low volume ETPs, the NYSE maintains the top position in both volume and number of listings as well as the lowest average spreads, and the largest displayed shares at the National Best Bid and Offer.”

NYSE Arca has 1,561 ETPs listed, representing over $2 trillion in assets under management (AUM) or nearly 94% of U.S. ETP AUM, and 21% market share of ETP trading volume as of February 16, 2016, the highest of any exchange.

 

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