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The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that The NASDAQ Stock Market(r) (NASDAQ(r)) has won the "Largest Exchange for ETFs" in the Americas award, as measured by dollar turnover, for the fourth consecutive year. NASDAQ is also the recipient of the "Largest Exchange for ETFs" in the Americas award, as measured by share volume. The awards were presented on April 17, 2008 by Exchangetradedfunds.com Inc. -- a leading provider of information about ETFs. They were based on objective statistical evaluations conducted by Morgan Stanley.
According to Morgan Stanley, NASDAQ's average daily share volume in all U.S. ETFs in 2007 was 265.3* million, more than all other U.S. exchanges. The average daily value of those shares (dollar turnover) was $21.2 billion*, also surpassing all other U.S. exchanges.
"We are elated that NASDAQ has been recognized as the largest and most liquid market for ETFs in the U.S.," said Chris Concannon, Executive Vice President, Transaction Services U.S., NASDAQ OMX Group. "NASDAQ OMX is committed to duplicating this success by creating similarly deep pools of liquidity on our Pan European Market."
NASDAQ OMX announced on April 17, 2008 it has filed an application with the UK Financial Services Authority (FSA) for the NASDAQ OMX Pan European Market to become a multilateral trading facility (MTF).
The NASDAQ OMX Pan European Market will enable best execution in high volume securities trading in a cross-border, multi-market environment. The market, which will be the first platform to connect European liquidity pools with Pan-European routing, is scheduled to open in September 2008. The launch of the NASDAQ OMX Pan European Market is subject to FSA approval.
NASDAQ's efficiency in ETF trading is attributable, in part, to The NASDAQ ETF Market, a market segment designed specifically for exchange traded funds and Index Linked Notes (ILNs). The centerpiece of the market is the Designated Liquidity Provider, a Market Maker who has been selected to maintain liquidity in qualified ETFs (i.e., Qualified Securities). NASDAQ requires Designated Liquidity Providers to maintain a higher standard of market quality measured by spread, depth, and time quoting at or near the National Best Bid and Offer (NBBO). They receive price incentives to support ETFs during their period of initial listing, when ETFs need to develop more active trading.
The NASDAQ ETF Market allows the traditional floor-based specialist, who has historically provided initial liquidity to new ETFs, to play a similar role by placing two-sided quotes in the NASDAQ Market Center. This enables ETF sponsors to continue to have the ability to develop "preferred" relationships with intermediaries. ETF issuers may choose a single Designated Liquidity Provider or multiple, competing liquidity providers. This flexible structure enables ETF issuers and traders to interact based on the needs of the issuer as they vary throughout the life cycle of the ETF.
NASDAQ OMX is a leading index calculator, designer and creator of some of the world's most popular ETFs, including PowerShares QQQ(tm) (Nasdaq:QQQQ) -- the most heavily traded listed equity security in the U.S. and the most active ETF in the world. PowerShares QQQ is designed to correspond to the price and yield performance of the NASDAQ-100 Index(r), the basis of more than 500 investment products in more than 36 countries.
For more information about the NASDAQ ETF Market, please contact Richard Keary, NASDAQ OMX New Listings, at 212.401.8903 or Richard.keary@nasdaqomx.com or NASDAQ OMX Market Sales at 800.846.0047 or sales@nasdaq.com.
