NEW YORK, April 29 Exchange operator Nasdaq OMX
Group said on Monday it will relaunch PSX, its third
trading platform, in May with a specific focus on
exchange-traded products (ETPs).
Nasdaq plans to offer incentives to firms that act as market
makers on PSX by regularly buying and selling the ETPs at the
publicly quoted price so that investors have a more fluid
Nasdaq first launched PSX in May 2010, using the license it
acquired when it bought the Philadelphia Stock Exchange in 2008.
ETP is an umbrella term that includes exchange-traded funds
(ETFs) and exchange-traded notes (ETNs).
"We're focused on delivering long-term value to investors by
significantly broadening the asset classes we offer to our
member firms, and the establishment of a preeminent marketplace
for ETPs supports that effort," Eric Noll, who heads Nasdaq's
U.S. and UK transaction services, said in a statement.
The relaunched PSX will have a "price-time priority"
structure, in which orders are ranked by price, and orders with
the same price are ranked by the time they were entered.
PSX had used a "price-size priority pro-rata" structure in
which standing buy and sell orders are matched proportionally
according to their size, irrespective of when they arrived at
The parent company also runs the flagship Nasdaq Stock
Market as well as Nasdaq OMX BX, previously the Boston Stock
Exchange. Those two venues use a "price-time priority"