The iShares MSCI India ETF (BATS: INDA) has completed the BATS Competitive Liquidity Provider (“CLP”) Program as the fund’s consolidated average daily volume has topped 1 million shares.
In an attempt to bolster liquidity in its less frequently traded exchange traded funds, BlackRock (NYSE: BLK) iShares ETF business is participating in BATS and NYSE Arca incentives programs.
The ETF provider is dishing out over $600,000 to encourage greater liquidity under the BATS Global Markets’ Competitive Liquidity Program and NYSE Arca’s ETP Incentive Program, reports Jackie Noblett for Ignites. That announcement was made earlier this year when iShares announced it was placing 18 ETFs on the BATS Competitive Liquidity Program.
Tincentives programs bring market makers to provide liquidity and improve buy and offer quotes, potentially assuaging institutional and retail investors with liquidity concerns. The program should tighten the bid-ask spreads on trades and provide quotes for large block orders.
BATS entered the ETF listing business in January 2012 with the launch of the iShares MSCI Norway Capped ETF (BATS: ENOR). BlackRock’s iShares unit accounts for about two-thirds of the ETF trading on BATS. Other issues listing on BATS include KraneShares, ProShares and ValueShares. [BATS Wants to be Dominant ETF Exchange]
“INDA has seen increased trading volumes and significant year-to-date in-flows of $1.7 billion as investors have sought efficient and low cost access to the Indian equity market. The first iShares ETF to graduate from the BATS CLP Program, INDA will remain listed on BATS,” according to a BATS statement.
INDA, which is home to 64 stocks and $3.95 billion in assets under management, is up 1.7% this year.
iShares MSCI India ETF
ETF Trends editorial team contributed to this post.
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