"The BSE is continuing its record of innovation by offering new trading products like DIAMONDS to our clients," said Kenneth R. Leibler, Boston Stock Exchange Chairman and CEO. "We are aggressively adding new exchange-traded funds (ETFs) to our market center as the popularity of these investment vehicles among retail and institutional investors continues to grow. In fact, over the last year we have experienced a four-fold increase in the number of ETFs traded at the BSE," he added.
"The BSE has a unique competitive advantage in trading ETFs because, unlike other market centers that restrict trading of any ETF to a single specialist, the BSE permits multiple competing specialists to make markets in a number of index shares," Leibler said. "This policy gives BSE members better access to stock allocations, and leads to increased depth, liquidity, and price improvement in the market," he added.
The BSE currently trades 23 ETFs, up from four in 1999, and BSE market share in ETFs has more than doubled in a year.
DIAMONDS represent an interest in a fixed portfolio of common stocks designed to track the price and dividend yield performance of the Dow Jones Industrial Average.
