In this commentary from Convergex's Eric Noll, he reports that the tick pilot is producing expected results - such as increased trade size and more price volatility. However, he noted that one test group bears closer scrutiny amid information leakage concerns.
What asset class are you planning to expand trading into or covering in 2017?
- Fixed income
More Articles - ETFs
For years, exchange-traded fund trading volume surged. Now, its slumping too. Nasdaq, NYSE and BATS are now slugging it out with incentives, new order types and a new ETF-focused exchange to resuscitate trading.
The major exchange operators are in pitched battle to win market share and build up volume of trading in exchanged-traded funds.
The Securities and Exchange Commission is set to decide by Dec. 8 whether to approve proposals by the Nasdaq Stock Market and NYSE Arca to permit sponsors of exchange-traded funds to pay broker-dealers for making a market in their securities.
Bank of America Merrill Lynch plans to expand the number of exchange-traded funds traded by its ETF-specific algo. Known as ETF-aXe, the two-year-old algo currently trades 300 ETFs. The new editions could include funds that go beyond just U.S. stocks.
With the current volatility of the equities markets, investors know they need to have exposure to bonds, but they often desire the ease and liquidity of equities, which can be provided by exchange-traded funds. Customers want fixed-income safety and stock convenience, which has driven PIMCO-the don of bonds-into the world of ETFs.