ETF Trends
ETF Trends

In a bid to enhance liquidity and execution services of its exchange trade fund suite, Invesco PowerShares has hired Eric Pollackov as Head of Global Capital Markets.

“We believe Eric is the right leader with experience and vision to guide our global capital markets team as the ETF space continues to see amazing growth from more providers and investors participating today than ever before,” Dan Draper, Head of Invesco PowerShares, said in a press release. “Eric’s team will play an increasingly important role in liquidity and trade execution services to ensure our clients receive the best service and most efficient execution possible.”

The Invesco PowerShares Global Capital Markets team serves as a point of contact for advisors and institutional investors for both primary and secondary market ETF activity. The PowerShares team helps bring together market makers, authorized participants and other sell-side firms with investors seeking to execute large trade orders.

Related: Understand How ETFs Work to Better Execute Trades

PowerShares also has a dedicated liquidity and execution services team to help financial advisors and institutional clients through the ETF trading process. The team helps investment clients gauge the potential liquidity of PowerShares ETFs, develop a client-specific strategy and evaluate the potential impact of a trade.

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If an advisor or institutional investor is unable to execute an efficient trade on the secondary market, a capital markets team will work with market making firms, APs or other sell-side firms to effectively make markets for the ETF trades.

Market makers provide further ETF market depth as they source liquidity for investors by allocating trades that are just pennies off the bid/ask price in the secondary market. In the primary markets, ETF providers and Authorized Participants may identify additional liquidity through the ETF creation/redemption process – the creation and redemption process helps facilitate large block trades in an ETF with low trading activity.

Related: Investing in What Appears to Be an Illiquid ETF

Pollackov will bring over 17 years of experience to PowerShares’ Capital Markets team. He recently served as Managing Director of ETF Capital Markets at Charles Schwab Investment Management, Inc.

“I’m thrilled to be joining Invesco PowerShares, where some of the industry’s first and most successful ETFs were first created,” Pollackov said. “The Global Capital Markets team at PowerShares is a differentiated offering that I believe serves a critical role in maintaining our trading relationships with the market-making community and has potential to bring even more investors into PowerShares ETFs.”

For more information on the ETF industry, visit our current affairs category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.