The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Nasdaq Extends Structured Liquidity Incentives

The Nasdaq OMX Group has decided to extend its designated liquidity provider promotion program to more ETFs and index-linked securities (ILS)

Under the program, the Nasdaq provided $0.004 per share credit to traders providing start-up liquidity for ETFs. It limited the program to ETFs with less than 250,000 shares in daily volume during two months of any three-month period. The exchange is now extending the program to ETFs that have less than 10 million shares in average daily volume.

Several ETF sponsors said the program was limited to ETFs in start-up mode, which would discourage liquidity providers to be involved after the ETF would gain critical mass. "You want the exchange to support the listing after the initial stage because market conditions can change at any point and volumes can drop off," one sponsor said. Exchange officials said they are upping the limit to prevent that from happening. "The change will encourage market maker support for ETFs and ILSs beyond their initial introductory period and thereby further enhance liquidity for the products as their trading volumes increase," officials said in a related rule filing. Nasdaq has been locked in a listings battle with NYSE Arca, which has been luring multiple ETFs (WSL, 7/6). A spokeswoman declined to comment. 

More stories from Wall street letter

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree