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Trump Won't Kill America, Bitcoin Will

In this shared piece, author Brett Cenkus argues that nation-states will cease to exist not because of a who, but a what - and it's already here.

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September 10, 2007

Some Cheer Nasdaq's New ETF Market

By James Ramage

For their part, ETF sponsors say the new Nasdaq market will be good for shareholders and competition, and furthermore, it could improve overall service. Dan Waldron, senior vice president of ETFs at First Trust Portfolios, in Lisle, Ill., has four ETFs already listed on Nasdaq. As he weighs the prospects of launching new ETFs there, Waldron says he's intrigued by the prospect of a specialist-type broker entering the equation. "We're confident it's going to be a good change."

But sponsors have also seen electronic trading decrease the number of market makers, forcing issuers to look elsewhere to find sources of seed capital, according to Nicholas Gerber, portfolio manager at Ameristock/Ryan Treasury ETFs. He says sponsors will look anywhere if they have a good idea, from primary market makers to hedge funds. "Or, maybe they'll come up with the money themselves for the first create, and therefore, they can go around the specialist system by going and using the Nasdaq," Gerber says.

But he adds a sober note to the effect Nasdaq's new ETF market could have on the trend of the declining number of market makers: "It may accelerate it, if all of a sudden we find out there are other sources of potential seed capital and market makers."