BATS Global Markets is keeping its momentum going as the exchange operator aims to become the premier listing destination for exchange traded funds. ProShares, the largest issuer of leveraged and inverse ETFs, said it is moving four ETFs to BATS, expanding an already robust on the Kansas-based exchange.
Maryland-based ProShares is moving the ProShares Large Cap Core Plus (CSM) , ProShares Russell 2000 Dividend Growers ETF (SMDV) , ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) and the ProShares Morningstar Alternatives Solution ETF (ALTS) to BATS from the New York Stock Exchange.
“We are pleased that ProShares is moving these four important products to The BATS ETF Marketplace, becoming the first issuer to switch products to our market,” said Chris Concannon, CEO of BATS. “We believe this important transfer is a recognition of BATS exceptional market quality coupled with our client-focused approach that supports all the needs of our ETP issuers.”
BATS had the lowest effective spread in 46 of the top 100 ETPs in October and remained the top exchange operator for ETF trading with 27.2% market share for the month. BATS has been the #1 U.S. market for ETF trading for every month of 2015 and the #2 U.S. market for overall equities trading, according to a statement.
BATS has attracted some listings from other well-known ETF providers in addition to being the listing venue of choice for providers behind several new ETFs. Recent new listings on BATS include ETFs from State Street and WisdomTree.
In September, BATS said it “plans to launch what it calls the BATS ETF Marketplace, which will pay ETF providers as much as $400,000 a year to list on BATS. Payments will vary depending on average daily volume,” report Bradley Hope and Leslie Joseph for the Wall Street Journal.
As part of its ETF expansion efforts, in April, BATS appointed Laura Morrison as Senior Vice President, Global Head of Exchange-Traded Products. Morrison previously acted as NYSE’s Senior Vice President of Global Index and ETPs and has accumulated 20 years of experience at the NYSE.
BATS is currently the top U.S. exchange for ETF trading volume, which has become a selling point for new issuers. Additionally, the exchange has adopted a favorable ETF market-making program, which provides incentives to market makers that put up their own capital to aid in tighter bid-ask spreads to promote liquidity and more efficient ETF trades. [BlackRock iShares Raising Liquidity in Smaller ETF Offerings]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.