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As we head into the last quarter of 2017, NYSE is working to support the continued growth of ETFs and the strength of the market. ETFs continue to see greater net inflows than at any other point in their history, with approximately $332 billion through the third quarter. I’d like to share a recap of key events, milestones and ETF news to support your efforts.

“We closed out the third quarter of 2017 with 32 new product launches, including the first-of-its-kind infrastructure ETF, focused exclusively on China – KraneShares’ One Belt One Road ETF (NYSE Arca: OBOR). Even after the launch of 2,000+ ETF products, it’s exciting to see the level of product innovation continuing in our space, offering new opportunities for investors to participate in the growth of different regions and sectors across the globe. Two brand new ETF issuers joined the NYSE marketplace with Nationwide and Transamerica establishing their ETF businesses within the past quarter. We welcome them to the NYSE community!

Two ETF sponsors also made the decision to transfer their products from Nasdaq to the NYSE. It was great to welcome BioShares, (NYSE Arca: BBC & BBP) managed by Virtus ETF Partners and BlueStar TA-BIGITech™ Israel Technology ETF (NYSE Arca: ITEQ) to the NYSE ETF marketplace.

At a broader company level, NYSE is continuing to drive important changes across our markets. In late July, we launched NYSE American. Formerly known as NYSE MKT, this market has been designed for small to mid-cap companies, and has a unique market model that combines automation with newly approved mechanisms like an intentional delay. As you’re aware, since early 2016, we’ve been tackling an ambitious project to roll-out NYSE Pillar, our purpose-built, state of the art trading platform. NYSE American and NYSE Arca are already operating on NYSE Pillar and we are looking forward to making more enhancements, as part of our efforts to modernize our markets, and deliver more choices for our issuers and market participants.

Thank you again for your ongoing partnership and I look forward to catching up with many of you at our upcoming ETF Trading Summit later this month.”

Douglas M. Yones, NYSE Head of Exchange Traded Funds

NYSE Arca has the most market share in trading volume, with nearly 2.2 times more liquidity than the next largest exchange.
Over 82% of all U.S. ETF AUM is listed on NYSE Arca.
NYSE Arca has the narrowest quoted bid/ask spreads.

REGULATORY UPDATES

Generic Listing Rules

We are committed to working on behalf of our issuers to enhance the generic listing rules for ETFs. We recently received SEC approval to expand the types of Equity Index-Linked Securities and Multifactor Index-Linked Securities that can be listed under the Exchange-Traded-Note (ETN) structure, and enhance the existing rules for ETNs, which have not been updated since 2008.

We have further rule filings planned to enhance ETFs and ETNs this quarter. If you have recommendations, please let us know.

Limit Up-Limit Down (LULD) process

On November 20, 2017, NYSE, NYSE American, and NYSE Arca will introduce changes to the opening process following an LULD Trading Pause. These changes to the LULD Plan are described as the twelfth and thirteen amendments.

Read More About the New LULD Process

INDEXING TRENDS

Our parent company, Intercontinental Exchange, continues to expand its diverse offering of innovative index products, with the launch of the NYSE FANG+ Index in late September.

The NYSE FANG+ Index is equal-weighted and will initially consist of Facebook, Apple, Amazon, Netflix and Alphabet’s Google, plus another five actively-traded technology growth stocks — Alibaba, Baidu, NVIDIA, Tesla and Twitter. The real-time NYSE FANG+ Index is calculated and disseminated through the NYSE Global Index Feed under the symbol “NYFANG.”

In order to provide investors with quick access to the NYSE FANG+ index, on November 8, 2017, ICE Futures U.S. will launch a quarterly futures contract based on the NYSE FANG+ Index, subject to regulatory review.

Learn More About the NYSE FANG+ Index

NYSE ETF Trading SUMMIT

There are many opportunities in the fourth quarter for the ETF community to come together and to discuss the biggest issues facing ETF liquidity, including our upcoming 2017 NYSE Trading Summit, which we are excited to host here at the New York Stock Exchange’s Big Board Club.

This year’s summit is an open forum, bringing together the ETF Lead Market Maker (LMM) community to discuss all things ETF related, including liquidity, sales, and distribution. Topics will range from Q&A on new product launches to understanding how to build the strongest ETF liquidity profile.

Learn more about the key topics for issuers to consider ahead of this important change.

FIND OUT MORE ABOUT THE NYSE ETF TRADING SUMMIT

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