NASDAQ Stocks
Invesco PowerShares Lists Two New ETFs On The NASDAQ
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Apr 14, 2008 - 6:00:34 PM

Invesco PowerShares Lists Two New ETFs On The NASDAQ

The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) announced that The NASDAQ Stock Market has listed two new exchange traded funds (ETFs) sponsored by Invesco PowerShares Capital Management LLC -- a leading provider of ETFs. NASDAQ is the most liquid U.S. market for ETFs, capturing 39.0% of all U.S. ETF volume in February. Matched volume was 8.1 billion, more than any other U.S. exchange.

The Invesco PowerShares-sponsored ETFs are trading on the NASDAQ ETF Market. This market is designed specifically to support ETFs and Index Linked Notes (ILNs) during their critical period of incubation and further strengthen NASDAQ's leadership position in the U.S. ETF sector.

The following Invesco PowerShares-sponsored ETFs listed on NASDAQ:

PowerShares NASDAQ NextQ Portfolio (Nasdaq:PNXQ)

PowerShares FTSE NASDAQ Small Cap Portfolio (Nasdaq:PQSC)

The PowerShares NASDAQ NextQ Portfolio seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the NASDAQ Q-50 Index (Nasdaq:NXTQ). The NASDAQ Q-50 Index is a market-capitalization weighted index designed to track the performance of the 50 securities that are next in line to replace the securities currently included in the NASDAQ-100 Index.

The PowerShares FTSE NASDAQ Small Cap Portfolio seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the FTSE NASDAQ Small Cap Index. The FTSE NASDAQ Small Cap Index (Nasdaq:FTSESC) is designed to track the smallest 10% of companies in the FTSE NASDAQ Index universe of listed companies ranked by market capitalization.

The focus of The NASDAQ ETF Market is the Designated Liquidity Provider, a Market Maker who has been selected to maintain liquidity in qualified ETFs (i.e., Qualified Securities). NASDAQ requires Designated Liquidity Providers to maintain a higher standard of market quality measured by spread, depth, and time quoting at or near the National Best Bid and Offer (NBBO). They receive price incentives to support ETFs during their period of initial listing, when ETFs need to develop more active trading.

Designated Liquidity Providers are selected by NASDAQ based on factors including experience with making markets in ETFs and ILNs, adequacy of capital, willingness to promote NASDAQ as a marketplace, issuer preference, operational capacity, support personnel, and history of adherence to NASDAQ rules and securities laws.

The NASDAQ ETF Market allows the traditional floor-based specialist, which has historically provided initial liquidity to new ETFs, to play a similar role by placing two-sided quotes in the NASDAQ Market Center. This enables ETF sponsors to continue to have the ability to develop "preferred" relationships with intermediaries. ETF issuers may choose a single Designated Liquidity Provider or multiple, competing liquidity providers. This flexible structure enables ETF issuers and traders to interact based on the needs of the issuer as they vary throughout the life cycle of the ETF.

NASDAQ OMX is a leading index calculator, designer and creator of some of the world's most popular ETFs, including PowerShares QQQ(tm) (Nasdaq:QQQQ) -- one of the most heavily traded listed equity securities in the U.S. and one of the most active ETFs in the world. PowerShares QQQ is designed to correspond to the price and yield performance of the NASDAQ-100