-Largest Public ETF Liquidity Pool in the U.S.-
NYSE Arca is the World’s Premier ETF Platform
-Leading Share of Trading, Total Listings and Assets Under Management-
-NYSE Group markets have 220 primary ETF listings, 41% of Total ETF Listings-
NEW YORK, October 25, 2007 –NYSE Euronext (NYSE Euronext: NYX) today announced that the first group of 14 WisdomTree ETFs completed their scheduled transfer from the NYSE to NYSE Arca on Oct. 10, 2007. NYSE Euronext expects the phased transfer of all NYSE listed ETFs to NYSE Arca to be completed by year-end.
With 67% of the total assets under management and over 42% of ETF trading volume for all U.S. ETFs, NYSE Arca is the first electronic stock exchange to offer investors the benefits and stability of a dedicated liquidity provider in the form of a Lead Market Maker for each primary listed ETF. NYSE Arca offers a proven market structure for trading both listed and unlisted ETFs.
“Our industry leading market quality and continued endorsements from the ETF issuers have been fantastic support for our unique exchange model,” said NYSE Euronext Senior Vice President, Exchange Traded Funds and Indexes, Lisa Dallmer. “Across all ETFs, NYSE Arca is driving the NBBO 85% of the time, providing the tightest quoted spread of 0.04% and the largest depth of quote across all exchanges, year-to-date through September.”
“We are pleased to continue our strong relationship with NYSE Euronext by listing a total of 31of our products on NYSE Arca,” said WisdomTree Investments CEO, Jonathan Steinberg. “With many of our funds trading on NYSE Arca as their primary market, we are confident that this platform’s market structure will continue to provide superior market quality and exceptional service for investors in WisdomTree ETFs.”
Initiated by specialist firms and undertaken in conjunction with issuers, NYSE Group concluded that the most efficient and industry-preferred market structure for listing and trading ETFs is the NYSE Arca platform, which utilizes dedicated liquidity providers in the form of Lead Market Makers (LMMs). This model, which requires LMMs to maintain certain performance obligations for all NYSE Arca listed securities, benefits investors and issuers with consistent liquidity and more orderly trading than a market model without such structure. NYSE Arca has offered this market model to all NYSE Arca primary listed stocks and ETFs since 2006.
NYSE Arca’s all-electronic market is the single largest public liquidity pool for ETFs in the U.S. and presents a compelling value proposition for investors and market professionals. So far in 2007, NYSE Arca handled 42.3% of all ETF shares traded in the U.S. , representing an average volume of approximately 216.36 million shares per day.
About NYSE Euronext
NYSE Euronext, a holding company created by the combination of NYSE Group, Inc. and Euronext N.V., commenced trading on April 4, 2007 . NYSE Euronext (NYSE Euronext: NYX) operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges in six countries, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. Representing a combined $30.3 trillion/€21.3 trillion total market capitalization of listed companies and average daily trading value of approximately $139 billion/€103 billion (as of September 30, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext's plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext's results to differ materially from current expectations include, but are not limited to: NYSE Euronext's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2006 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on June 6, 2007 under No. R.07-0089), 2006 Annual Report on Form 10-K, as amended, and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
Source ArcaVision: January 2007 through September 2007, statistics for all ETFs in the US marketplace. Quoted Depth: Total number of shares displayed at each exchange's best price. This metric is conditional on a 2-sided market. Quoted Spread: The dollar difference between an exchange's bid price and offer price divided by the Mid Point. This metric is conditional on a 2-sided market.