MARKET STRUCTURE DICTIONARY

Are Mutual Funds Buying into ETFs?

Sept 7, 2012  Securities Technology Monitor  Mutual funds are looking to put shares of exchange-traded funds such as GLD into their holdings. But they don’t publicize it.

Global ETF, ETP Assets Top Record $1.7T

Sept 6, 2012  Securities Technology Monitor  Global assets invested in exchange-traded funds and exchange-traded products reached a record $1.76 trillion through the end of August 2012.

Amid Weak Returns, Hedge Funds Take Aim at Risk Management

Sept 5, 2012  Advanced Trading  As hedge funds fight their way through a second weak year in a row, a study by BNY Mellon, the Managed Funds Association and HedgeMark says the industry is putting risk management under the spotlight.

Investors Flee Equity Funds, Embrace ETFs

Aug15, 2012  Securities Technology Monitor  Equity fund investors appear to be exiting from mutual funds and investing in ETFs instead. Fixed income funds are a different story.

Industry Sounds Off On Paying ETF Market Makers

Aug 8, 2012  Traders Magazine  If issuers of exchange-traded funds could pay to attract market makers to their products, would there be more liquidity in ETFs? Or would paying market-makers create a dangerous precedent and harm long-term investors?

Investors in Illiquid ETFs May Get Hurt by Knight Debacle

Aug 3, 2012  Advanced Trading  Retail investors and traders who want to buy and sell small, illiquid exchange-traded funds may be unwittingly losing money in the aftermath of the Knight Capital Group trading disaster Wednesday, according to an analysis by IndexUniverse, a San Francisco-based ETF research provider.

Congressman to Propose Bill Allowing Issuers to Pay for Market Making

June 27, 2012 Traders Magazine A Republican congressman plans to introduce a bill that would encourage stock exchanges to develop programs that permit their listed companies to pay market makers to support their stocks. The bill would also void rules of the Financial Industry Regulatory Authority that bar the payments.

iShares and Bloomberg offer consolidated tape for ETFs

May 28, 2012  The Trade  iShares, the exchange-traded fund provider owned by Blackrock, and Bloomberg have teamed up to offer a consolidated tape for ETFs designed to improve transparency and limit the impact of market fragmentation.

NYSE Backs Payments for ETF Market Makers

May 3, 2012  Traders Magazine  Following a similar proposal by Nasdaq OMX, NYSE Euronext has unveiled a plan to allow market makers to get paid for providing liquidity for exchange-traded funds. If approved, the plan could reduce the number of funds listed without lead market makers.

April 16, 2012  Traders Magazine  Volumes for exchange-traded funds are down, and many people believe that declines in correlations at the beginning of this year could be the cause. According to a recent Credit Suisse report, ETFs made up only 16 percent of overall volume in the first quarter of 2012, down from 19 percent for all of 2011.

Nasdaq Proposes Paying ETF Market Makers

April 13, 2012  Traders Magazine  Nasdaq OMX is pushing forward with a plan to allow issuers of exchange-traded funds to indirectly pay market makers for quoting, a proposal that could help bring greater liquidity to lightly traded ETFs.

'Bailout Nation' Author Says Correlation Killing Volumes

Jan 27, 2012  Traders Magazine  Barry Ritholtz, author of the bestselling book "Bailout Nation," said yesterday he expects equity trading volumes to remain low for the foreseeable future due to the rampant correlation in the stock market.

Fundsmith's Terry Smith fires fresh warnings on ETFs

Jan 18, 2012  Reuters  Exchange traded funds (ETFs) are being widely missold as a low cost form of index tracker when in fact they are highly complex vehicles best suited to hedge funds and proprietary trading desks, a leading investor said.

Low-Touch Trading Moving Toward High-Touch Service

Nov 14, 2011  Traders Magazine  As high-touch trades continue to decline and trading algorithms get increasingly complicated, buyside firms are turning to the sellside to offer execution consulting that combines high-touch service with low-touch technology. That's according to a new report by Tabb Group, which found that by 2013 the way the sellside services clients will look radically different from today.

Buyside Favors Indexes Over Single Stocks

Oct 20, 2011  Traders Magazine  Institutions are trading more options on indexes and exchange-traded funds than on single stocks, a reversal of practices just five years ago.

The Big Impact - Part 2

Oct 10, 2011  Traders Magazine  This continuation of Traders Magazine's October cover story examines how the importance of exchange-traded funds is growing as their assets continue to soar. Bank of New York Mellon has predicted that ETF assets will double to $2 trillion by the end of 2015.

The Big Impact - Part 1

Oct 7, 2011  Traders Magazine  Earlier this year, ETFs made up between 25 percent and 30 percent of total market volume, but as trading heated up this summer, they rose to as high as 40 percent of volume for some days. That has made the industry pay new attention to these instruments.

Lead ETF Market Makers Face Hurdles

Oct 5, 2011  Traders Magazine  With the rise of exchange-traded funds, more attention is being focused on those who make markets for ETFs. Though one might expect the business to be booming, it has remained a difficult space for those involved.

Europe Lags Behind For ETFs