Nasdaq Exchange Traded Funds

Nasdaq Exchange Traded Products - A Premier Listing Venue



Nasdaq is the single largest equity exchange by market share. Leveraging our global infrastructure and experience, Nasdaq delivers a complete solution to exchange traded products.

Flexible Structure


Designated Liquidity Provider (DLP) Program

Designated Liquidity Providers (DLPs) are market makers who have been selected to increase Market Quality and liquidity provisioning NASDAQ-listed ETPs.

Effective May 2021 The Nasdaq Stock Market (“Nasdaq”) will offer new Designated Liquidity Provider (DLP) program for exchange traded products (ETPs). The program offers additional standard and enhanced rebates given all the Market Quality requirements (see below) are met. The Nasdaq ETF Team identified 5 key Market Quality Requirements for ETF liquidity DLPs will need to meet including time @ NBBO, time within 5bps of NBBO, notional depth, average spread, and auction quality. Please see the link in the end for more details.

Nasdaq will offer the following rebates to DLPs, based on ETP Industry ADV from the prior month:

Prior Month ADV Less than 50k Between 50k and 150K Between 150k and 250K Between 250k and 1 Million Greater than 1 Million
Standard Rebate $300/month $225/month $200/month $0.0040/share $0.0034/share
Enhanced Rebate $500/month $450/month $350/month $0.0042/share $0.0036/share

 

The new DLP program will also offer a secondary DLP program to further increase liquidity support for ETP issuers in lower ADV ETPs. Secondary DLP will need to hit at least 2 Enhanced Market Quality Requirements to qualify for the rebates. Nasdaq will offer the following rebates to secondary DLPs, based on ETP Industry ADV from the prior month:

Prior Month ADV Less than 250k Greater than 150k
Standard Rebate $150/month $0.0003/share

 

DLPs will be offered additional incremental trade rebates based on the number of ETPs taken on as DLP. If a DLP quotes on average at least 20% of the NBBO across all assigned ETPs and the average liquidity provided by the DLP for each assigned ETP averages at least 5% of the liquidity provided on Nasdaq in the respective ETPs, the DLP will qualify for the rebates below on all the NASDAQ-Listed ETPs they trade:

Tiers 1 2 3 4
Number of Assigned ETPs as DLP 100 50 25 10
Incremental Tape C ETP Rebate $0.0005/share $0.0004/share $0.0003/share $0.0002/share


Benefits for Issuers

A Full-Service Offering

The Nasdaq ETF Market is the only end-to-end solution available to the ETF issuer community. Capabilities include:

  • Indexing – Nasdaq is a full-service Index provider with diverse indexes covering all asset classes. Prepared with an index solution for any market, we provide independent, third-party custom index services and design solutions to financial organizations worldwide. A wide range of capabilities allow clients to set unique parameters based on regions, sectors, theme, taxes, regulatory constraints, calculation methods or specific investment strategies to create the exact index needed. See all the ETFs based on Nasdaq indexes.

  • Listing – A premier listing exchange for approximately 3,600 industry-leading companies from more than 50 countries representing all industry sectors and many of the world’s most well-known and innovative brands.

  • Trading – As the largest ETF exchange based on volume, Nasdaq offers a trading venue with deep liquidity and transparency.

  • Data Dissemination – Nasdaq Global Data Products provide millions of traders and investors all over the world with strategic advantages, including superior speed, transparency, depth and flexibility of data management and delivery.

  • Superior Technology – Nasdaq is renowned for its high performance INET technology and has proven reliability with 99.99+% uptime. Firms count on Nasdaq for unsurpassed speed and tested capacity to execute trades quickly and efficiently.


  • New ETP Listings

Contact

  • To learn more about the benefits of listing or trading on the Nasdaq ETF Market, please visit ETFs at Nasdaq.
  • Stay in-the-know with all things Nasdaq ETFs by subscribing to our monthly newsletter. Subscribe here.
  • If you have any questions or are interested in connecting with a member of the Nasdaq ETF Team, please reach out to ETFs@nasdaq.com.