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BATS Global Markets (BATS), the leading U.S. market for the trading of exchange-traded funds (ETFs), today announced that the iShares MSCI India ETF (BATS: INDA) has graduated from the BATS Competitive Liquidity Provider (CLP) Program by establishing consolidated average daily volume (CADV) of more than 1 million shares for three consecutive months.
The proprietary BATS CLP program, which was designed for the BATS ETF listings business, is a supplemental issuer-sponsored rewards-based program designed to incent market makers to make tighter quoted spreads and increase liquidity for each listing on BATS. A product with CADV of more than 1 million shares for three consecutive months graduates from the CLP program and moves into regular trading or can also choose to participate in the Lead Market Maker (LMM) program.
“The success of the iShares MSCI India ETF is a testament to the CLP program and iShares’ ability to bring innovative products to market,” said Laura Morrison, Senior Vice President, Global Head of Exchange-Traded Products at BATS. “iShares was the first issuer to list on BATS when we launched in 2012 and we appreciate the partnership in working to provide great market quality for their products listed on BATS.”
The iShares MSCI India ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI India Index. The India-focused ETF had $3.8 billion assets under management as of May 28, 2015*. There are currently 21 ETFs from iShares listed on BATS Exchange.
Through the BATS CLP program, Market Makers compete for a daily monetary reward by posting competitive quotes in an ETF. CLPs are rewarded based on their continuous daily quoted size at the National Best Bid/Offer (NBBO) in the securities for which they are registered CLPs. Each liquidity provider must be a registered Market Maker on BATS and must be approved by BATS to be a CLP for each listing. There is no limit to the number of CLPs that can be registered in each ETF listing.
BATS ranks as the top exchange operator for ETF trading with the BATS Exchanges – BYX, BZX, EGDA, EDGX – executing 26.1% of all ETF trading in May. BATS has been the #1 U.S. market for ETF trading for every month of 2015 while remaining the #2 U.S. market for overall equities trading. BATS is also the leader in market quality for ETFs and, in May, the BATS U.S. equity exchanges had the lowest effective spread in 51 of the top 100 exchange-traded products, according to the BATS market quality statistics.
Additional information the CLP Program and listing on BATS is available on the BATS Listings website. ETF issuers interested in learning more may email listings@bats.com.
*Source: iShares
