Earlier this week, the Nasdaq Stock Market announced plans to launch the Nasdaq ETF Market, a segment designed especially for exchange traded funds (ETFs) and index-linked notes. The new department is designed to strengthen the electronic market’s position in the U.S. ETF sector.
As of May, Nasdaq accounted for 54.1% of the ETF market. According to HedgeWeek, the Nasdaq ETF Market will feature designated liquidity providers, which are market-makers selected to maintain liquidity in certain ETFs. These designated providers will maintain a higher standard of market quality measured by spread, depth and time quoting at or near the national best bid and offer. Price incentives will be given to support ETFs during their initial listing period.
Nasdaq’s focus on the ETF market is another example of how ETFs generate growth in the investment world.
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