White Paper on ETFs
What Exchange Traded Funds mean for smaller exchange organisations
Frankfurt, November 2, 2011
Exchange Traded Funds are on a worldwide discovery tour. Many exchange organisations have introduced ETF trading. Launching ETFs in a smaller market can pay well for an exchange organisation: it can create new trading activity, new relationships between the exchange and market participants, and it can attract a lot of public interest inside and outside your market.
But there is also a downside. In some smaller markets the development of the local ETF market has not met expectations, in other markets the launch of ETFs is still pending. Is there an ideal case for the launch of ETFs, and who really benefits from introducing these modern investment tools?
We have now decided to share parts of our knowledge to increase the momentum and help the smaller markets to develop. This paper is aimed at exchange officials, because in many cases it was the stock exchange that decided to initiate ETF trading. We are happy for any other market participant to use the document. Asset managers, traders, regulators, institutional investors, banks or even investment clubs – they can also be helpful in initiating an ETF to make a small market more mature.
Exchange Traded Funds are on a worldwide discovery tour. Many exchange organisations have introduced ETF trading. Launching ETFs in a smaller market can pay well for an exchange organisation: it can create new trading activity, new relationships between the exchange and market participants, and it can attract a lot of public interest inside and outside your market.
But there is also a downside. In some smaller markets the development of the local ETF market has not met expectations, in other markets the launch of ETFs is still pending. Is there an ideal case for the launch of ETFs, and who really benefits from introducing these modern investment tools?
We have now decided to share parts of our knowledge to increase the momentum and help the smaller markets to develop. This paper is aimed at exchange officials, because in many cases it was the stock exchange that decided to initiate ETF trading. We are happy for any other market participant to use the document. Asset managers, traders, regulators, institutional investors, banks or even investment clubs – they can also be helpful in initiating an ETF to make a small market more mature.
Be aware: apart from the business benefits for exchanges, the listing, trading and running of ETFs holds many more opportunities for the other involved market participants to generate business.
White Paper:
What Exchange Traded Funds mean for smaller exchange organisations
What Exchange Traded Funds mean for smaller exchange organisations