As we welcome the official start of summer, it’s a great opportunity to take stock of the first half of the year. The markets have been hit by bouts of volatility, with macroeconomic concerns continuing to drive both volumes and two-way cash flow across ETFs. It’s also been a very active IPO season, with big-name companies like Uber and Slack going public at the New York Stock Exchange. And in case you missed it, 75% of all U.S. tech IPO proceeds have been raised this year at the corner of Wall and Broad streets.
The ETF industry has been just as active. With more ETFs launching in the first half of this year vs. last, the long-anticipated approval of Precidian’s ActiveShares model, a new SEC Commissioner coming on-board, and numerous regulatory proposals being issued for comment ... there’s no summer slowdown happening this year.
I invite you to check out our most recent quarterly report to stay current with ETF industry updates, preview some changes that impact our businesses, and look for new opportunities to grow your ETFs.
Enjoy the summer and please contact the NYSE ETF Team or me directly with anything we can do to help your business.
Douglas M. Yones, ChFC
Head of Exchange Traded Products
New York Stock Exchange
Preparing to Offer the DMM Model for ETFs
In preparation to begin listing ETFs directly on the iconic NYSE Trading Floor, the NYSE has defined and filed for regulatory approval for a unique set of ETF Designated Market Maker (DMM) requirements. We are excited to offer the NYSE market making model, which combines state-of-the-art technology with human judgment and accountability, to the ETF industry, increasing overall industry market depth and liquidity.
Live from the NYSE Trading Floor
The NYSE Floor remains the center of global capital markets, and it’s where our ETF issuers have increasingly come to tell their story to the world. You can now find ETF coverage broadcast live from the Floor and published across the NYSE social media feeds throughout each week.
NYSE’s #WhatstheFund? is in full swing and has featured over 35 funds across all of NYSE’s social platforms--generating millions of impressions and highlighting our NYSE Arca listed funds.
Alongside Asset TV, we launched Season Two of the popular show ETF TV, sponsored by the NYSE, which continues to cover ETF launches, investor education and deep-dive interviews with ETF issuers and strategists. And the newest ETF-centric CNBC segment, ETF Edge with Bob Pisani, is now filmed weekly from CNBC Post 9, featuring top ETF industry participants discussing educational and actionable advice on ETFs.
From the Capital
The NYSE received approval to broaden our Active Generic Listing Standards, allowing ETFs listing on NYSE Arca to hold a larger portion of non-agency, asset-backed securities in their portfolio. We’re pleased that this development expands Active ETF listing standards, providing portfolio managers with additional investment flexibility for their ETFs.
In an important ETF industry expansion, Precidian Investments received approval on an exemptive application for its non-transparent actively managed ETF solution, named ActiveShares. Funds using the ActiveShares structure will be able to create ETFs that do not disclose their holdings on a daily basis, similar to traditional mutual funds. The solution provides investors with daily liquidity in the ETF wrapper. We’re excited to usher in this new innovative solution for active managers to join the ever-growing NYSE ETF community. Read more about what this approval means for industry on LinkedIn, and contact us with any questions.
Also of importance was the news from Washington that the Senate confirmed Allison Lee’s appointment as SEC Commissioner. She succeeds former Commissioner Kara Stein. Ms. Lee’s appointment brings the Commission back to full membership following Ms. Stein’s departure earlier this year.