Spencer Mindlin, an analyst at Aite Group LLC, argued that the Bats’ marketplace for both ETFs and ETF options could provide CBOE support to challenge the Intercontinental Exchange, which offers both options and equities trading.
“If it’s under one roof, they’d be in a pretty good position to turn around some options-plus-ETF products that market participants could take advantage of,” Mindlin told Bloomberg. “That potentially gives them a leg up, the ability to offer products that combine listed options on ETFs with the underlying ETF product.”
SEE MORE: BATS Encouraging Greater Liquidity in ETF Trades
Bats has been enticing ETF listings through its cash incentives programs. Recently, Bats adopted a program that would allow lead market makers to receive as much as $400,000 per ETF each year on the BATS exchange, depending on the average daily volume. Concannon has pledged to make Bats the top listing venue for ETFs in the next three to five years.
For more information on the ETF industry, visit our current affairs category.