On Monday, NASDAQ OMX Group, Inc. (NASDAQ:?NDAQ) announced the re-launch of NASDAQ OMX PSX(SM)?(PSX(SM)) in an effort to create a marketplace for Exchange Traded Products (ETPs). ?According to a press release, the price-time exchange will offer unique market making programs and features designed to provide liquidity for both ?institutional and retail investors.
Pending Securities and Exchange Commission approval, PSX will re-launch in May.?
Upon its relaunch, PSX will offer Registered Market Maker and PSX Supplemental Liquidity Provider (XLP) designations to the participants that take 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 will also introduce an innovative, competitive and transparent Lead Market Maker program that will narrow spreads and increase displayed size in ETP securities. These registered market makers may compete for LMM status in ETP securities and will receive enhanced benefits for assuming enhanced liquidity provision obligations. LMMs will also be promoted by PSX to the ETP issuer and investor communities.
Eric Noll, Executive Vice President of Transaction Services U.S. and U.K. at NASDAQ OMX, said,?”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. 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.”
PSX will use NASDAQ OMX’s INET technology. This will allow market participants to execute trading strategies across ETPs and other asset classes with familiar performance.