Trading Disruptions Underline Importance of ETF Market Makers
Posted on August 09, 2012 at 10:12 AM EDT
The market turmoil caused by a trading glitch at Knight Capital Group (NYSE: KCG) highlights the important role that “authorized participants” play to ensure orderly trading in ETFs. Knight is a key market maker in several smaller ETFs that have lower trading volume. Spreads in these funds widened...
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