The iShares Interest Rate Hedged High Yield Bond ETF (HYGH) and the iShares Asia/Pacific Dividend ETF (DVYA) are now participating in the NYSE Arca ETP Program.
As described in NYSE Arca Equities Rule 8.800, the NYSE Arca ETP Incentive Program is designed to incentivise Market Makers to undertake Lead Market Maker (LMM) assignment in exchange-traded products (“ETPs”) listed on NYSE Arca. As a participant in the NYSE Arca ETP Incentive Program, BlackRock will continue to pay the applicable NYSE Arca Listing and Annual fees in addition to an Option Incentive Fee, which would range from USD10,000 to USD40,000 per year and will in turn be paid by NYSE Arca to the LMM assigned to HYGH and DVYA.
While the impact of participation in the NYSE Arca ETP Incentive Program, which is optional, cannot be fully understood until objective observations can be made in the context of the NYSE Arca ETP Incentive Program, potential impacts on the market quality of HYGH and DVYA may result, including with respect to the average spread and average quoted size for HYGH and DVYA.
