The move supports the NYSE's goal to build scale in the ETF arena by trading the most-active ETF products on a UTP basis. With the addition of the 27 ETF products the NYSE now trades a total of 31 ETFs and related products. The NYSE currently trades three ETFs on a UTP basis (QQQ, DIA and SPY) and one NYSE-listed ETF, the iShares S&P Global 100 (NYSE:IOO). Together, these products account for 94% of ETF trading volume in the U.S.
"Since we've come into the market, we've provided a pool of liquidity that has made ETFs more attractive," said Catherine R. Kinney, NYSE president, co-chief operating officer and executive vice chairman. Since the NYSE's announcement that it would begin trading unlisted ETFs in April of 2001, consolidated quoted spreads for QQQ, SPY and DIA have contracted more than 83 percent.
The Exchange recently announced plans to develop a series of NYSE-branded indexes that will be calculated and maintained by Dow Jones Indexes. The first three of these indexes will be introduced in May, representing the top U.S. and non-U.S. NYSE-listed companies as well as the technology, media and telecommunications sectors. The NYSE will subsequently launch ETFs based on these indexes.
HOLDRS (Holding Company Depositary Receipts) are trust-issued receipts representing the beneficial ownership of a specific group of stocks in a particular industry or sector.
The MidCap SPDR which tracks the S&P MidCap 400 Index, measures the performance of the mid-size company segment of the U.S. market. The nine Select Sector SPDRs track specific sectors or groups of industries that are represented by a Select Sector Index. Collectively the nine Select Sector Indexes represent all of the companies in the S&P 500 Index.
