To help enable a data-driven, fact-based discussion around price improvement activity, NYSE has published a study quantifying the aggregate price improvement achieved by US equity investors in H1 2022 and analyzing its composition. Our study is based on public TAQ data and evaluates every standard trade in the first two quarters against the prevailing NBBO at that time.
Key Findings
At common trade increments broadly available to all market participants, on exchange trading currently delivers 54% of total price improvement
Just 12% of total price improvement occurs at sub-penny prices, as public investors are largely unable to compete at such price points
Harmonizing pricing rules across the market could yield $6.3MM per day ($1.8B per year) in investor cost savings, based on projected incremental savings if exchanges could offer sub-penny price improvement in a competitive manner
2023 was an exceptional year for global equity ETPs. Until the fourth quarter, profits were limited generally to a few tech companies, but gains broadened in Q4. We review fund flows, returns and activity in multiple equity ETP categories.
2023: The Year in U.S. ETPs - Part 2
January 17, 2024
Actively managed ETPs now account for 1/3 of all U.S. ETP listings, accounting for 6.5% of AUM and 22.5% of fund flows in 2023. Futures-based Crypto ETP activity grew as the year progressed, likely in anticipation of the 11-Jan-2024 launch of cash bitcoin ETPs.
U.S.- listed ETP AUM continued to grow, with NYSE Group markets leading the way. Equities remain the largest asset class, but fixed income products gained ground.