Moreover, BATS will employ the Competitive Liquidity Provider program to incentivise market makers, or authorized participants, to augment liquidity in ETFs on the exchange – market makers help create and redeem ETF shares. [Exchanges Ready Incentive Programs to Boost ETF Liquidity]
Through the BlackRock (NYSE: BLK) iShares ETF listings, BATS Chi-X Europe hopes to bring in a high-profile endorsement for the exchange.
“This is a ‘let’s see if we can introduce something innovative to the market in the hopes of growing the market and simplifying the trading environment,'” Leland Clemons, head of capital markets EMEA for iShares, said in the article.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.