Nasdaq’s ETF Market centres around the designated liquidity provider (DLP), a market maker who has been selected to maintain liquidity in qualified ETFs (ie. qualified securities).
Nasdaq will require DLPs 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 will receive price incentives to support ETFs during their period of initial listing, when ETFs need to develop more active trading. DLPs will