ETF/ETP Listing Services – Q&A

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18 November 2013.

See our current schedule of listed ETFs/ETPs and their associated parameters.

All Bats-listed ETFs trade on the CXE lit and dark order books only. All Participants connected to CXE do not need to adapt their systems to enter orders in our listed ETFs.

Yes, where we list the same ETF that is already listed on another exchange, we use that exchange's security code (as we do today for all our securities) to ensure that firms with orders flagged as “routable orders” can have their orders onward routed to the primary listing venue should we be unable to fill their order in part or full. Any routed orders executed on an away venue are confirmed to our customers as Bats Europe trades.

ETF Issuer/Sponsors determine where they want the ETF to settle. All our central counterparties have settlement arrangements in all of Europe's national and international Central Securities Depositaries.

Some issuers have begun to issue and list their funds in an international CSD (e.g. Euroclear Bank), in order to remove cross border realignment of settlements when trading the same ISIN on multiple exchanges. Bats' Participants, directly or through their settlement agents, need to ensure they have appropriate settlement arrangements in place just as they do for settling in any national CSD. Bats' interoperable CCPs are able to settle in any or all of Europe's domestic and international CSDs so they can support an Issuer's specific settlement requirements. More details in relation to internationally issued and settled ETFs can be found here.

Trading fees can be found on the support page.

Bats' listing fees are published on the support page.

No

Bats offers a true pan-European trading and listing platform, customers and products. We provide supplements to our Maker / Taker pricing model with liquidity schemes like our innovative Issuer-sponsored Competitive Liquidity Provider (CLP) program, provide Smart Order Routing to attract and enfranchise domestic and regional participants, and make available our lit and dark order books.

Bats provides a lower-cost regulated-market alternative with multiple currency coverage. Bats provides Issuers with market analytics related to the quality of their order books and over time presents them with the ability to reduce the number of listings and concentrate secondary market liquidity on a pan-European platform.

Bats offers market Participants a single pan-European lower-cost trading platform and quality order books, additional incentive schemes to liquidity providers and, as part of an overall pan-European strategy, trading opportunities and efficiencies in primary and secondary market activity.

Trading hours for our listed ETFs/ETPs on the order book will be from 08:00 to 16:30 London time. Bats' Exchange Trade Reporting (ETR) service allows Participants to submit ETRs in ETFs/ETPs, as well as all other securities, from 08:00 to 16:50. Click here for all our trading hours.

Yes. Details can be found in the Bats Listing Service Description.

Bats operates static and dynamic price monitoring thresholds. Details can be found in the Bats Participant Manual.

Standard lit book and dark book order types will operate for Bats-listed ETFs/ETPs. Bats dark books will peg to its own lit book prices. See the Bats Participant Manual for details.

Where Bats makes an ETF available for trading but does not list it, it will not operate an auction facility. For listings on Bats, we will consult with our customers with a view to providing an auction.

The CLP program is designed to reward liquidity providers for quoting and will operate alongside our Maker/Taker pricing scheme which will continue to reward liquidity providers for trading. Details of the CLP program can be found here.

Bats-listed ETFs/ETPs will be supported by liquidity providers under defined liquidity schemes. As an alternative to the CLP scheme, Issuers can elect to use a designated market maker scheme where the liquidity provider(s) simply need to sign up to one of our existing Liquidity Provider Programs. Details can be found here.

Yes, Bats Trading Participants can register (or de-register) as a liquidity provider at any time and for any number of ETFs operating under the program.

Participants will be able to clear their trades in listed ETFs/ETPs in exactly the same way as they clear all other ETF/ETP trades on Bats.

iNAV is calculated by a number of third parties and made available on vendor

platforms. If demand develops for Bats to provide an iNAV, in particular to support end investors, Bats will review the efficacy and value of publishing an iNAV or fair value iNAV.

All ETF/ETP trades, whether executed on the order books or received under Bats' Trade Reporting Services (BXTR), will be published in the same way as other securities traded on or reported through Bats. In addition to these trade details, Bats will publish an opening price, a closing price and the day's traded high and low price.