PIMCO ETF makes historic move to in-person trading

Dec 2nd, 2022 | By | Category: ETF and Index News

The $3.1bn PIMCO Active Bond Exchange-Traded Fund (BOND US) has switched its primary listing to the New York Stock Exchange’s Big Board, becoming the first ETF since 2007 to trade in an open outcry pit.

PIMCO’s ‘BOND’ makes ETF history with move to in-person trading floor

The NYSE believes that a combination of human and electronic trading can benefit certain ETFs.

BOND, which is also the first-ever active ETF to be listed on the Big Board, initially made its debut in 2012 by listing on NYSE’s fully electronic ‘Arca’ platform, currently the leading listing venue for ETFs in terms of both number of funds and assets under management.

Electronic trading offers numerous benefits including lower costs, greater speed and efficiency, and less risk of market manipulation.

However, according to the NYSE, combining electronic and floor-based trading can benefit certain types of ETFs including recently launched funds experiencing irregular but significant order flows, funds that tend to experience large order flows at the start or close of the trading day, and relatively unusual funds such as those that are actively managed or those that invest in niche market segments.

The NYSE notes that, in these situations, the in-person model can often deliver more efficient trading outcomes including reduced volatility, enhanced liquidity, improved price discovery, and lower trading costs. BOND’s move to the hybrid model represents a trial of these assertions with ETF issuers likely paying close attention to the results.

Douglas Yones, Head of Exchange Traded Products at NYSE, said: “We are excited to welcome the PIMCO Active Bond Exchange-Traded Fund to the New York Stock Exchange, making history as the first active ETF to ever list on the NYSE floor. The NYSE is thrilled to be able to bring ETFs to our iconic trading floor where they can leverage a unique trading model that combines industry-leading technology and human judgment as well as the greater visibility inherent in an NYSE listing.”

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