Ryan Kirlin joined the Global Index and Exchange Traded Product Group in early 2011. He started out in the Client Relationship Services Group at...
We are pleased to announce the official launch of the NYSE Arca Exchange Traded Product (ETP) Incentive Program (IP) today on a 1 year pilot basis. This optional program was officially approved by the SEC on June 6th, 2013, with additional exemptions received on Section 11(d)1 and Rule 11d1-2 on September 3rd, 2013.
ETP Issuers can participate in this optional program by paying anywhere from $10,000 to $40,000 per ETP per year. For the purposes of the pilot program, ETP Issuers are limited to choosing up to 5 securities that are already listed on NYSE Arca, as well as any new securities that launch during the pilot program’s duration. Securities which have a Consolidated Average Daily Volume of greater than 1 million shares for the preceding 3 months, have suspended creations/redemptions or are ETNs are not eligible for this pilot program.
The NYSE Arca ETP Incentive Program offers Lead Market Makers (LMMs) on NYSE Arca an alternative payment structure in return for meeting or exceeding their IP quoting obligations. Currently, LMMs receive enhanced rebates for liquidity provision and get charged lower fees for removing liquidity so their economics are directly tied to the trading volume of the security. This new program offers LMMs a fixed payment, not tied to volume traded, in addition to receiving standard maker/taker rebates and fees.
More information can be found in the press release link.
For more information on the program, please refer to the program page at: http://etp.nyx.com/trading-information/us/nyse-arca-etp-incentive-program