The schemes recognise that there will be certain circumstances when the appointed market makers cannot reasonably be expected to make markets in accordance with the market making specifications.
You generally pay a little more to buy ETFs than you would receive for selling ETFs at any given time. The width of the spread can vary between different ETFs. For some heavily traded ETFs the offer may be only a couple of cents higher than the bid, while for less liquid ETFs the spread may be wider.
Market makers have an important role in ensuring that buyers and sellers can transact in markets. Market makers receive incentives from ASX when making markets in accordance with the market making specifications under the applicable schemes. The specifications set out below are a summary of select terms in the market making incentive agreements between ASX and relevant maker makers, and are not intended to be a definitive or comprehensive summary of those agreements.
ASX does not incentivise ETPs with internal market making arrangements. ETPs that use internal market making are generally noted with “N/A” in the table below. For specific information about the risks associated with internal market making, please refer to ‘Fund Specific Risks’ here.
*All references to time are to Australian Eastern Standard Time or Australian Eastern Daylight Time (as applicable) unless otherwise stated.
Please click here to learn more about market making arrangements.