Nasdaq Implements enhanced Exchange Traded Product Designated Liquidity Provider (DLP) Trade Rebates
OREANDA-NEWS. October 03, 2016. Nasdaq Stock Market (“Nasdaq”) will offer enhanced Designated Liquidity Provider (DLP) rebates for exchange traded products (ETPs). A summary of the changes are below:
- Nasdaq will be changing the name of Lead Market Maker to Designated Liquidity Provider.
- Nasdaq will off the following standard trade rebates to DLPs.
|Less than 500k||Between 500k and 5 Million||Greater than 5 Million|
- Nasdaq will offer enhanced rebates for new products. New products will be offered enhanced DLP rebates for a period of three years.
|0-12 months of product launch||12-24 months of product launch||24-36 months of product launch|
- DLPs will be offered additional incremental trade rebates based on the number of ETPs taken on as DLP. Additional incentives will apply to a DLPs trading activity across Nasdaq ETP primary listings.
|Minimum Number of Assigned ETPs as DLP||10||25||50|
|Incremental Tape C ETP Rebate||\\$(0.0003)||\\$(0.0004)||\\$(0.0005)|
To encourage increased DLP participants, Nasdaq will extend an incremental additional Tape C ETP rebate of \\$0.0001 to any DLP with less than 10 DLP assignments, but that increases the number of ETPs for which it is a DLP by 100%. A DLP receiving its first assignment will count as a 100% increase. This incremental rebate is only available for the first 100% increase and thus is not available for subsequent increases of 100%.