The New York Stock Exchange announced Friday that it would soon begin trading exchange-traded funds on an unlisted trading privileges basis.
An exchange-traded fund is a basket of stocks which is designed to track the performance of an index, and can be bought and sold like a stock. It will be possible to trade the funds any time during normal market hours, the exchange announced.
' Our intent is to trade ETF products, such as the Nasdaq 100 Trust, Standard & Poors Depositary Receipts and Diamond Trust, that are listed on other markets and not the individual companies that are in the underlying index and may not be listed on the NYSE,' said Richard Grasso, chairman and CEO of the New York Stock Exchange, said in a statement,
The New York Stock Exchange began trading ETFs in December 2000, when it listed the iShares S&P Global 100 Exchange Traded Fund, which is based on the S&P Global 100 index. With this move, the NYSE will significantly increase its presence in the trading of exchange-traded funds, which until recently had been the domain of Nasdaq and the American Stock Exchange.