Stats Show Liquidity Providers Help Improve Market Quality

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NYSE Euronext liquidity provider programs are designed to provide deep and continuous liquidity and improve market quality through narrower spreads, larger quoted size. NYSE and NYSE Amex programs include Designated Market Makers (DMMs) and Supplemental Liquidity Providers (SLPs). On NYSE Arca, issuers of Exchange Traded Funds (ETFs) are supported by Lead Market Makers (LMMs).

These unique liquidity provider programs contribute to superior market quality where NYSE Euronext is the primary listing venue. Detailed results and statistics for August 2011, through August 19th, are as follows:

NYSE lists 3,239 securities with issuers who each choose one each of the 5 DMMs and 10 SLPs. With the liquidity support and quoting obligations of DMMs and SLPs, NYSE consistently ranks number one in liquidity and market quality. 

  • Most liquidity: NYSE has the highest market share in 96% of NYSE-listed securities, including the most market share in 90% of the top 10 most active NYSE-listed securities and 90% of the top 100 most active NYSE-listed securities.
  • Superior market quality: NYSE has the narrowest quoted spreads and sets the NBBO with the largest size 35% of the time in the top 250 NYSE-listed securities and 44% of the time in the less active stocks (top 1,000 to 2,000).

NYSE Arca lists 1,295 Exchange Traded Products (ETPS) with issuers selecting one of 12 LMMs.

  • Most liquidity: NYSE Arca has the highest market share in 87% of NYSE Arca-listed securities.
  • Superior market quality: In NYSE Arca-listed securities, NYSE Arca has the narrowest quoted spreads and sets the NBBO with the largest size 65% of the time.

NYSE Amex lists 530 securities with issuers choosing one of four DMMs, plus SLP coverage.

  • Most liquidity: NYSE Amex trades more volume in NYSE Amex-listed securities than any other exchange with the highest market share in 71% of Amex-listed securities.
  • Superior market quality: In NYSE Amex-listed securities, NYSE Amex consistently ranks number one in the narrowest quoted spreads and sets the NBBO with the largest size 36% of the time, nearly double the next best exchange.
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