In December, trading at the exchange was halted for 15 minutes because of a technical issue, though traders said the impact was minimal as orders flowed to other markets.
Mindlin said that glitches can have a competitive impact in a sector where Nasdaq Inc. and CBOE Holdings Inc. are battling for business. CBOE’s Bats unit hired ETF executive Laura Morrison from NYSE, and in March 2016 bought ETF.com, a data and news provider for the industry.
“These consequences of outages like this highlight the importance of stable and trustworthy technology at the market venue where an ETF issuer chooses to list its products,” said Mindlin. “The marketplace for ETF listings is very competitive. Bats and Nasdaq have been attracting listings as fund providers look to diversify.”
This article was provided by Bloomberg News.