Still, that’s some way off. Some 79 percent of ETF assets are in stock funds that aren’t eligible to join the main exchange due to so-called line of sight rules that prohibit derivative products from trading in view of their underlying components. But market makers do expect to see demand from funds that are eligible.
“A lot of issuers would love to have a DMM manage their listing,” said Ari Rubenstein, chief executive at GTS, a NYSE DMM that recently agreed to buy Cantor Fitzgerald LP’s ETF business. “They love it because there’s lots of liquidity, efficiency and transparency for their investors, and ETF issuers are attracted to that.”
This article was provided by Bloomberg News.