The price is right for ETFs

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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 ...

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