NYSE Arca ETP Incentive Program
The NYSE Arca ETP Incentive Program was formally approved by the SEC on June 6th, 2013, and will commence on a 1 year pilot basis beginning September 4th, 2013. Market quality reports on the participating ETPs will be posted over the course of the pilot.
The program is a new and innovative way for market makers to be incentivized to take on the role of being a Lead Market Maker (LMM) in ETPs under an alternative fee structure. LMMs play a crucial role in promoting a consistent, fair and orderly market in their ETP assignments, benefiting both the issuer and the end investor transacting in those products.
Under this optional program, issuers are given the flexibility to choose the amount they would like to pay, between $10,000 and $40,000 per ETP annually, to be a part of the program. LMMs get fixed quarterly payments, rather than variable enhanced transaction rates, in return for meeting their monthly LMM quoting obligations.
- SEC Filing
- SEC Approval Order
- Section 11(d)1 and Rule 11d1-2 Exemption
- FAQ Notice
- Issuer Application for the NYSE Arca ETP Incentive Program
- Lead Market Maker Application for the NYSE Arca ETP Incentive Program
- List of ETPs Currently in the Program
For more details on the program, please contact your NYSE Arca representative or email firstname.lastname@example.org.
The impact of participation in or exit from the Incentive Program, which is optional, cannot be fully understood until objective observations can be made in the context of the Incentive Program. Potential impacts on the market quality of the issuer’s ETP may result, including with respect to the average spread and average quoted size for the ETP.