Paolo Giulianini, head of ETF trading and advisory at UniCredit, speaks to Emma Dunkley about liquidity and the role of the market maker
ETFs are hailed for their many benefits, with liquidity chief among the range of attractions. Priced continuously throughout the day, ETFs are easily tradable for investors seeking to gain diversified exposure to a wide spectrum of asset classes. Behind the scenes, this intra-day liquidity is powered by market makers, who must maintain continuous ETF quotes during the whole trading session, regardless of whether the underlying market is closed and despite any other potentially impeding factors. “The market maker signs a binding agreement with the ETF issuer and the exchange, so he ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes