Two ETF Exchanges Team Up To Become One

Exchange traded funds (ETFs) previously listed on the American Stock Exchange are quickly shifting over to their new home on the NYSE Euronext.

The move brings the total exchange traded product listings on the NYSE Euronext to 680, excluding ETFs overseas. One provider that moved its ETFs over is Claymore, which today moved 21 ETFs to the NYSE Arca. Claymore currently had 33 U.S.-listed ETFs, and before today’s move, nine were already listed on the NYSE Arca.

Eric Rosenbaum for Index Universe spoke with Lisa Dallmer, vice president of NYSE Euronext, about the benefits of the acquisition and the outlook of ETFs. Dallmer says first and foremost, the bundling of the historic Amex with the stronger technology platform (Euronext) will create a best-of-the-breeds approach.

ETFs will now have the largest listings platform aligned with a much better trading platform. This is not only important for the ETFs, either, but for the traders that make markets for ETFs. To be frank, the AMEX market share in transactions and order flow has been low, but firms still needed to maintain connections to that platform, and that had a cost.

As of Dec. 1, the Amex trading technologies will be dissolved for equities and ETFs. On the last day of November, all ETFs will move to NYSE Arca, and on Dec. 1, equities will follow to NYSE Alternext supported by NYSE technology. ETF provider support has been strong throughout.

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