BATS, the #1 Market for ETP Trading on Exchange with 45% Market Share*, Unveils Incentive Programs…
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BATS Global Markets (BATS), the #1 U.S. market for the trading of exchange-traded products (ETPs), today unveiled The BATS ETF Marketplace, a market specifically structured and designed for ETF issuers and their investors.
The unveiling of the BATS ETF Marketplace – ETFMarketplace.com – underscores the company’s complete and unique commitment to the listing and trading of exchange-traded products. With this initiative, BATS introduces the BATS ETF Issuer Incentive program and the BATS Lead Market Maker program.
“As the largest market for exchange traded funds, BATS is uniquely positioned to change the game for issuers, investors and market makers,” said BATS Global Markets CEO Chris Concannon.
BATS has ranked as the #1 exchange operator for ETP trading for every month of 2015, handling 45% of all ETF exchange trading in August*. The ETP business now comprises more than 30% of the BATS trading business in the U.S.
Issuer Incentive Program
The BATS Issuer Incentive Program is an innovative and unique payment program that allows an issuer to benefit from listing on BATS by providing an annual payment for each product listed on BATS with Consolidated Average Daily Volume (CADV) greater than 1 million shares per day.
Traditionally, ETP issuers have paid between $5,000 and $55,000 on an annual basis in order to be listed on a U.S. stock exchange. BATS recently disrupted that paradigm by implementing its free ETP listing offering. Now BATS intends to redefine the listing relationship for issuers by paying issuers for their listings. As trading volume increases for an ETP, so does the payment earned by the issuer.
“At BATS, we believe it is important for an exchange to align its interests with the interests of its issuers and their investors. Our Issuer Incentive Program accomplishes that by allowing issuers to share in the revenues from the trading of their products,” said Laura Morrison, Senior Vice President, Global Head of Exchange Traded Products at BATS. “Our Issuer Incentive program creates an opportunity for ETP issuers to offset expenses with revenue from activity in their products while trading on one of the most liquid markets for ETPs.”
The BATS ETP Issuer Incentive Program offers an annual rebate based on the following CADV ranges on a per-product basis, as follows:
Source: ETFWorld.com
WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)
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