Exchange Traded Funds

Based on trading volume, The NASDAQ Stock Market is the world’s largest exchange for exchange traded funds (ETFs). In 2004, 2005 2006 and 2007, NASDAQ won the “Largest Exchange for ETFs” in the Americas award, presented by Exchangetradedfunds.com Inc. — a leading provider of information about ETFs. These awards were based on third party statistical evaluation.
 

We are also a leading index calculator, designer and creator of some of the most well-known ETFs in the world. The NASDAQ ETF Market is a competitive listing market designed specifically for ETFs. It leverages NASDAQ OMX’s strength in trading, indexing and investor outreach to best serve ETF sponsors and ETF investors. NASDAQ OMX is best positioned to help sponsors create, grow and evolve ETFs into liquid investment tools.

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-side 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.
 

The NASDAQ ETF Market reflects NASDAQ OMX’s market structure:

• Competitive: Multiple market makers competing for price and trade executions
• Transparent: Full price disclosure to investors
• Accessible: Trade executions measured in milliseconds
• Proven Technology: Opening/closing cross process