NASDAQ OMX to Launch Marketplace Designed for Exchange Traded Products
NEW YORK, April 29, 2013 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), the world's largest exchange company, today announced that it will re-launch NASDAQ OMX PSX(SM) (PSX(SM)) in an effort to create the leading marketplace for Exchange Traded Products (ETPs). The price-time exchange will offer unique market making programs and features designed to provide robust liquidity to institutional and retail investors. PSX will re-launch in May 2013 pending approval by the Securities and Exchange Commission.
Upon re-launch, PSX will offer Registered Market Maker and PSX Supplemental Liquidity Provider (XLP) designations to participants that undertake an affirmative quoting obligation on the exchange. These market making programs will ensure committed liquidity is available by offering superior economics to participants that meet quoting requirements on a per-security basis. PSX also plans to introduce an innovative, competitive and transparent Lead Market Maker program designed to narrow spreads and increase displayed size in ETP securities. PSX registered market makers may compete for LMM status in ETP securities and will receive enhanced benefits in exchange for assuming enhanced liquidity provision obligations. In addition to receiving superior economics in the ETPs they lead, LMMs will be promoted by PSX to the ETP issuer and investor communities.
"We're focused on delivering long-term value to investors by significantly broadening the asset classes we offer to our member firms, and the establishment of a preeminant marketplace for ETPs supports that effort," said Eric Noll, Executive Vice President of Transaction Services U.S. and U.K. at NASDAQ OMX. "PSX is a key piece of our larger strategy to better service the ETP industry with a platform designed to incent high-quality liquidity, market incentive programs and ETP-specific functionality."
NASDAQ OMX gives market participants the ability to choose from three different models for U.S. equity trading, including The NASDAQ Stock Market, NASDAQ OMX BX and now PSX for trading in an ecosystem designed specifically for ETPs. PSX will use NASDAQ OMX's proven INET technology, enabling market participants to execute trading strategies across ETPs and other asset classes with familiar, superior performance.
About NASDAQ OMX:
The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels economies and provides transformative technologies for the entire lifecycle of a trade - from risk management to trade to surveillance to clearing. In the U.S. and Europe, we own and operate 24 markets, 3 clearinghouses and 5 central securities depositories supporting equities, options, fixed income, derivatives, commodities, futures and structured products. Able to process more than 1 million messages per second at sub-40 microsecond speeds with 99.999% uptime, our technology drives more than 70 marketplaces in 50 developed and emerging countries into the future, powering 1 in 10 of the world's securities transactions. Our award-winning data products and worldwide indexes are the benchmarks in the financial industry. Home to over 3,300 listed companies worth $6 trillion in market cap whose innovations shape our world, we give the ideas of tomorrow access to capital today. Welcome to where the world takes a big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more, visit nasdaqomx.com. Follow us on Facebook (http://www.facebook.com/NASDAQ) and Twitter (http://www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P 500)
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX PSX and NASDAQ OMX's other products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
CONTACT: NASDAQ OMX Media Contact: Robert Madden +1 (646) 441-5045 (office) +1 (347) 740-0191 (mobile) Robert.Madden@NASDAQOMX.com
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