BATS Global Markets is looking to become an even bigger player in the exchange traded funds listings arena in a unique: By offering to pay ETF issuer to list with the Kansas-based exchange operator.
BATS entered the ETF listing business in January 2012 with the launch of the iShares MSCI Norway Capped ETF (BATS: ENOR). ENOR’s BATS debut was followed by several other single-country offerings from iShares, including the iShares MSCI Denmark Capped ETF (BATS: EDEN), iShares MSCI Canada Small Cap Index Fund (BATS: EWCS) and the iShares MSCI Finland Capped ETF (BATS: EFNL). [BATS Lures ETF Issuers]
Today, ETFs from iShares, a unit of BlackRock and the world’s largest ETF issuer, account for 21 of the 31 BATS-listed ETFs.
However, BATS has attracted some listings from other well-known ETF providers in addition to being the listing venue of choice for providers behind several new ETFs. For example, ProShares lists seven ETFs on BATS, including the ProShares Investment Grade-Interest Rate Hedged ETF (BATS: IGHG) and the ProShares High Yield Interest Rate Hedged ETF (BATS: HYHG).