On-exchange trading of ETFs is gaining in importance because exchanges have regulations recognized across the market, IFA Online reports. Around 60 per cent of trades in the European market are off-exchange, one reason why the market seems to be lacking in liquidity.
Pietro Poletto, head of ETF and fixed-income markets at the London Stock Exchange, said the situation was changing now. For asset managers, having a ticket on screen and a central counterparty was important owing to compliance reasons. Companies such as Cowen Group have started offering trades on exchange on demand from the ETF industry for onscreen transactions.
Click here for the story from IFA Online.