Bats, Nasdaq Wrestling ETFs Away from NYSE Arca

Moreover, back-to-back market glitches also shook confidence in NYSE Arca last week, along with other minor trading problems, which helped steer sponsors to other exchanges.

“New York can kind of rationalize and say, OK, it’s only a few ETF listings,” Larry Tabb, founder and research chairman of Tabb Group, a research and consulting firm, told the WSJ. “But by the time the big players turn around, the innovators have breached the castle walls.”

NYSE’s competitors first tried to chip away at the behemoth’s staunch position in the ETF industry through cheaper or fee-free listings along with other sweeteners, such as advertising on Nasdaq’s electronic billboards in Times Square. Bats has also paid incentives to issuers if certain targets are met.

“The listings business is going to change dramatically in the coming years,” Bryan Harkins, executive vice president and head of U.S. markets at Bats, told the WSJ.

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