ETPs - market maker arrangements

How does market making work?

Each day the ETF issuer publishes the list of securities that make up the ETF or ETP, enabling market makers to calculate the net asset value (NAV) of the ETF throughout the trading day. This helps market makers to more accurately price the ETFs. They place a 'spread', which is their return, around the NAV, resulting in:

a bid price, at which they will buy ETFs, and
an offer price, at which they will sell ETFs.

They then place these prices on ASX for investors to trade with. This spread will vary throughout the trading day.

The appointed market makers receive incentives from ASX when making markets in accordance with the applicable market making specifications. The market making specifications include a minimum time period for making markets under the scheme, as well as a minimum liquidity requirement. There is also a limit on the maximum spread between the bid and offer price that a market maker can quote when making markets under the scheme.

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.

Quoting schedules

ETP Code	Quoting Schedule	BNP Paribas	Susquehanna	UBS	Jane Street	Nine Mile Financial	Citi	Flow Traders
A200	1	✔	✔		✔	✔	✔	✔
AQLT	2		✔
EINC	N/A
EX20	2	✔	✔			✔	✔
GRNV	3		✔			✔	✔
INIF	N/A
IOZ	N/A	✔	✔		✔	✔	✔
ILC	1	✔	✔			✔	✔
ISO	3	✔	✔		✔	✔	✔
MVW	1		✔			✔	✔
MVS	3		✔				✔
QOZ	1		✔		✔	✔	✔
RINC	N/A
SMLL	N/A
STW	11		✔		✔		✔
SFY	1		✔		✔	✔	✔
SSO	3		✔				✔
UMAX	2		✔			✔	✔
VAS	11	✔	✔		✔	✔	✔	✔
VLC	1	✔	✔			✔	✔
VSO	3	✔	✔		✔	✔	✔
WIRE	4		✔

ETP Code	Quoting Schedule	BNP Paribas	Susquehanna	Jane Street	Nine Mile Financial	Citi
ATEC	2		✔		✔	✔
BNKS			✔
MVA	2		✔		✔	✔
MVB	2		✔			✔
MVE	2		✔		✔	✔
MVR	2		✔			✔
OZF	2		✔	✔		✔
OZR	2		✔	✔	✔	✔
OZXX	2				✔
QFN	2		✔		✔	✔
QRE	2		✔		✔	✔
RINC	N/A
SLF#	2		✔	✔	✔	✔
VAP	2	✔	✔	✔	✔	✔

ETP code	Quoting schedule	BNP Paribas	Susquehanna	UBS	JPMorgan	Jane Street	Nine Mile Financial	Citi
AASF	N/A
AUMF	3	✔	✔		✔	✔	✔	✔
AUST	2		✔
AYLD	2		✔				✔
BBOZ	2		✔			✔	✔
BEAR	1		✔			✔	✔
DBBF	2						✔
DGGF	2						✔
DHHF	2						✔
DVDY	3		✔					✔
DZZF	2						✔
E200	3		✔			✔		✔
EIGA	N/A					✔
EINC	N/A
FAIR	3	✔	✔			✔	✔	✔
FDIV	2		✔
GEAR	2		✔			✔	✔
GIVE	N/A
GOAT	4		✔
HVST	1		✔			✔
IESG	3	✔	✔		✔
IHD	2	✔	✔			✔	✔	✔
IIGF	N/A
IMPQ	N/A
INES	N/A
KSM	N/A
MAAT	N/A
MVOL	3	✔				✔	✔	✔
RARI	3		✔				✔	✔
RDV	3		✔				✔	✔
SELF	1		✔				✔	✔
SNAS	1		✔			✔
SWTZ	N/A
SYI	3		✔			✔	✔	✔
VETH	3	✔	✔		✔	✔	✔	✔
VHY	2	✔	✔			✔	✔	✔
YMAX	1		✔			✔	✔
ZYAU	1		✔				✔	✔

ETP Code	Quoting Schedule	BNP Paribas	Susquehanna	JPMorgan	Jane Street	Nine Mile Financial	Citi	Flow Traders
ADEF	N/A
AESG	4	✔			✔	✔
AGX1	N/A
AUDS	2					✔
BAOR	4					✔
BBUS	1		✔		✔	✔
BGBL	2	✔	✔		✔	✔		✔
CETF	3		✔		✔
CNEW	3		✔		✔
CURE	4					✔
DAOR	4					✔
DBBF	2		✔		✔
DGGF	2		✔		✔
DHHF	2		✔		✔
DVDY	3		✔
DZZF	2		✔		✔
EAFZ	3					✔
EMKT	3		✔		✔
EMMG	3
ERTH	3				✔		✔	✔
ESGI	3		✔		✔	✔
ESTX	2		✔		✔	✔		✔
ETHI	3		✔		✔	✔	✔
F100	3		✔		✔	✔	✔	✔
FATP	N/A
FEMX	N/A
FUTR	4					✔
GGUS	1		✔		✔	✔
GLOB	N/A
GOAT	4		✔		✔
GOOD	4					✔
GROW	N/A
HETH	3		✔		✔	✔	✔
HEUR	3		✔		✔	✔	✔
HGBL	2	✔	✔		✔	✔		✔
HGEN	3		✔
HJPN	3		✔		✔	✔	✔	✔
HNDQ	2		✔		✔		✔
HQLT	3		✔
HYGG	N/A
IAA	3	✔	✔		✔	✔
IBAL	2	✔				✔
ICOR	4	✔		✔		✔
IDEA	N/A
IEM	3	✔	✔		✔	✔		✔
IEAT	3				✔
IESG		✔		✔	✔	✔	✔
IEU	3	✔	✔		✔	✔
IGRO	2	✔				✔
IHOO	2	✔	✔			✔		✔
IHVV	1	✔	✔		✔	✔		✔
IHWL	3	✔	✔		✔	✔		✔
IIFG	N/A
IIND	4		✔		✔
IJH	3	✔	✔		✔	✔
IJP	3	✔	✔		✔			✔
IJR	4	✔	✔		✔	✔		✔
IKO	4	✔	✔		✔	✔		✔
ILB	4					✔
INCM	3		✔		✔		✔
IOO	3	✔	✔		✔	✔		✔
ITEK	3				✔	✔
IVE	4	✔	✔		✔	✔		✔
IVV	1	✔	✔		✔	✔		✔
IWLD	3	✔	✔		✔	✔		✔
IYLD	4					✔
IZZ	3	✔	✔		✔	✔		✔
JEPI	2		✔		✔
JHPI	2		✔
JPEQ	3		✔
JPHQ	3		✔
JPSI	3		✔
JREG	2		✔
KII	N/A
LPGD	N/A
LSGE	N/A
MAET	N/A
MCGG	N/A
MFOA	N/A
MGOC	N/A
MHG	N/A
MHHT	N/A
MICH	N/A
MKAX	N/A
MOAT	4		✔		✔
MOGL	N/A
MSTR	2		✔
MTAV	3	✔			✔
MVOL	3		✔
NDIA	3		✔
NDQ	2		✔		✔	✔	✔	✔
NNUK	N/A
PAXX	N/A
PGTX	N/A
PIXX	N/A
QHAL	3		✔		✔
QLTY	3		✔			✔	✔
QMAX	2		✔
QMIX	1		✔
QSML	3		✔		✔
QUAL	3		✔		✔	✔
QUS	3		✔			✔	✔	✔
QYLD	2		✔			✔
RCAP	N/A
SEMI	3		✔		✔			✔
SPY	1		✔					✔
STW	1							✔
T3MP	2		✔
TANN	3				✔
UMAX	2		✔				✔
URNM	3				✔
USD	1					✔
UYLD	2		✔			✔
VAE	4	✔	✔	✔	✔	✔
VDBA	2	✔	✔	✔	✔	✔
VDCO	2	✔	✔	✔	✔	✔
VDGR	2	✔	✔	✔	✔	✔
VDHG	2	✔	✔	✔	✔	✔
VEQ	3	✔	✔		✔	✔
VESG	2	✔	✔	✔	✔	✔
VEU	2		✔		✔	✔		✔
VGAD	2	✔	✔		✔	✔
VGE	3	✔	✔		✔	✔
VGS	1	✔	✔		✔	✔		✔
VISM	3	✔	✔	✔	✔	✔
VLUE	2		✔		✔
VMIN	2	✔	✔	✔	✔	✔
VNGS	N/A
VTS	2		✔		✔			✔
VVLU	2	✔	✔	✔	✔	✔
WCMQ	N/A
WDIV	4		✔		✔
WDMF	3	✔	✔		✔	✔
WEMG	3		✔		✔
WRLD	2		✔			✔
WVOL	3	✔	✔		✔	✔
WXHG	2		✔
WXOZ	2		✔		✔
YANK	2					✔
ZYUS	2		✔		✔

ETP Code	Quoting Schedule	BNP Paribas	Susquehanna	JPMorgan	Jane Street	Nine Mile Financial	Citi	Flow Traders
ACDC	4		✔	✔	✔	✔
ADEF	N/A
ASAO	3					✔
ASIA	3		✔		✔	✔	✔	✔
ATOM	4		✔			✔
BNKS	3		✔		✔	✔	✔
CLDD	3		✔		✔		✔	✔
CLNE	3		✔		✔			✔
CORE	4		✔		✔
CURE	4		✔
CRYP	3		✔		✔			✔
DJRE	4		✔		✔	✔
DRIV	3		✔			✔
DRUG	3		✔		✔	✔	✔
EDOC	3		✔		✔
ERTH	3		✔
ESGI	3		✔		✔
ESPO	4		✔		✔
ETHI	3							✔
FANG	2		✔		✔	✔		✔
FDEM	N/A
FOOD	3		✔		✔		✔
FUEL	3		✔		✔	✔	✔
GAME	3		✔		✔
GCO2	4		✔			✔
GDX	4		✔		✔			✔
GLIN	3		✔	✔		✔
GLPR	3		✔	✔		✔
GMTL	3		✔
GPEQ	2		✔			✔
HACK	4		✔		✔	✔	✔	✔
HGEN	3		✔			✔		✔
HJZP	N/A
HLTH	4		✔			✔
IBAL	2			✔
IBUY	3		✔		✔
IEU	3							✔
IFRA	2		✔		✔
IGRO	2			✔
IPAY	4		✔		✔	✔
ISLM	N/A
ITEK	3			✔
IXI	4	✔	✔		✔	✔		✔
IXJ	4	✔	✔		✔	✔		✔
JZRO	4					✔
LNAS	1		✔		✔	✔
MCCL	N/A
MNRS	3		✔		✔	✔	✔
NDQ	2		✔		✔	✔
MTAV	3		✔
NDIA	4					✔
QMAX	2		✔			✔
QUAL	3							✔
RBTZ	3		✔		✔		✔
REIT	3		✔			✔
ROBO	4		✔		✔
ROYL	3		✔		✔
SEMI	3		✔			✔
SNAS	1		✔			✔
TECH	4		✔		✔
VBLD	3	✔	✔	✔	✔	✔		✔
VEQ	3							✔
VESG	2							✔
VGAD	2							✔
VTS	2					✔
WDIV	4					✔
XMET	3		✔		✔
XCO2	4				✔

ETP code	Quoting schedule	Susquehanna	Citi	Jane Street
AUDS	2	✔
EEU	1	✔	✔
POU	1	✔	✔
USD	1	✔	✔	✔
YANK	2	✔
ZUSD	1	✔

ETP code	Quoting schedule	BNP Paribas	Susquehanna	JPMorgan	Jane Street	Nine Mile Financial	Citi	Flow Traders
AAA	11		✔		✔	✔	✔
AESG	4			✔
AGVT	3		✔		✔		✔	✔
BILL	1	✔			✔	✔	✔
BOND	4		✔		✔		✔	✔
BNDS	4		✔		✔		✔
CRED	4		✔		✔		✔	✔
BHYB	4		✔			✔
DHOF	5					✔
EBND	4		✔			✔
FLOT	4		✔		✔		✔
GBND	4		✔
GCAP	4		✔			✔
GOVT	4		✔		✔		✔	✔
GGOV	4		✔			✔
HBRD	N/A
HCRD	2		✔
IAF	4	✔	✔	✔	✔	✔	✔	✔
ICOR	3	✔	✔		✔		✔
IGB	4	✔	✔	✔	✔	✔	✔	✔
IHCB	4	✔	✔		✔	✔		✔
IHEB	4	✔	✔		✔	✔		✔
IHHY	4	✔	✔		✔	✔		✔
ILB	4	✔	✔	✔	✔		✔
ISEC	1	✔			✔	✔	✔
IYLD	3	✔	✔		✔		✔
OBZD	4		✔		✔
OZBD	4	✔	✔					✔
PLUS	4		✔		✔		✔
QPON	4		✔		✔		✔
RGB	4		✔			✔	✔	✔
RSM	4		✔			✔	✔	✔
RCB	4		✔			✔	✔	✔
SUBD	4		✔		✔		✔
USHY	4		✔
USIG	4		✔		✔	✔		✔
USTB	4		✔			✔
VACF	4	✔	✔		✔	✔	✔	✔
VAF	4	✔	✔		✔	✔	✔	✔
VBND	4	✔	✔	✔	✔	✔		✔
VCF	4	✔	✔	✔	✔	✔		✔
VEFI	2	✔	✔	✔	✔
VGB	4	✔	✔		✔	✔	✔	✔
VIF	4	✔	✔		✔	✔		✔
XARO	4		✔			✔

ETP code	Quoting schedule	Challis
YTMAGL	RB	✔
YTMALD	RB	✔
YTMANZ	RB	✔
YTMAPA	RB	✔
YTMAP1	RB	✔
YTMAST	RB	✔
YTMAS2	RB	✔
YTMAWC	RB	✔
YTMAZJ	RB	✔
YTMBH1	RB	✔
YTMCCA	RB	✔
YTMCTX	RB	✔
YTMDO1	RB	✔
YTMDO2	RB	✔
YTMDOW	RB	✔
YTMDX1	RB	✔
YTMDX2	RB	✔
YTMDX3	RB	✔
YTMF13	RB	✔
YTMF14	RB	✔
YTMF15	RB	✔
YTMF16	RB	✔
YTMF17	RB	✔
YTMGPT	RB	✔
YTMGP1	RB	✔
YTMIP1	RB	✔
YTMIPL	RB	✔
YTMLLC	RB	✔
YTMLL1	RB	✔
YTMMGR	RB	✔
YTMMG2	RB	✔
YTMMQ1	RB	✔
YTMMQG	RB	✔
YTMNA1	RB	✔
YTMNAB	RB	✔
YTMNVN	RB	✔
YTMORG	RB	✔
YTMQF1	RB	✔
YTMQF2	RB	✔
YTMQF3	RB	✔
YTMQF4	RB	✔
YTMSCG	RB	✔
YTMSCP	RB	✔
YTMSGP	RB	✔
YTMSG1	RB	✔
YTMSG2	RB	✔
YTMSG3	RB	✔
YTMTCL	RB	✔
YTMTLS	RB	✔
YTMTL1	RB	✔
YTMTL2	RB	✔
YTMVCX	RB	✔
YTMVC1	RB	✔
YTMWB1	RB	✔
YTMWBC	RB	✔
YTMWES	RB	✔
YTMWE1	RB	✔
YTMWOW	RB	✔
YTMF04	RB	✔
YTMF05	RB	✔
YTMF06	RB	✔
YTMF07	RB	✔
YTMF08	RB	✔
YTMF09	RB	✔
YTMF10	RB	✔
YTMF11	RB	✔

ETP code	Quoting Schedule	Jane Street	Flow Traders	Susquehanna	Nine Mile Financial
BCOM	2		✔	✔
ETPMPM	RB/4	✔	✔
ETPMPT	RB/5	✔	✔
ETPMAG	RB/3	✔	✔	✔	✔
ETPMPD	RB/5		✔
GOLD	1	✔	✔	✔	✔
OOO	3	✔	✔		✔
PMGOLD	RB			✔
QAU	1	✔	✔	✔	✔
XCO2	4		✔	✔	✔

Requirements by schedule

Bid Price in $AUD	Maximum Spread	Minimum Quantity
Schedule 1
<$5	2c	$50,000
>$5	40bps	$50,000
Schedule 2
<$5	3c	$30,000
>$5	60bps	$30,000
Schedule 3
<$5	5c	$25,000
>$5	1%	$25,000
Schedule 4
<$5	7c	$20,000
>$5	1.50%	$20,000
Schedule 5
<$5	10c	$17,500
>$5	2%	$17,500
Schedule 6
<$5	12c	$15,000
>$5	2.50%	$15,000

Bid Price in $AUD	Maximum Spread	Minimum Quantity
Schedule 7
<$5	17c	$12,500
>$5	3.50%	$12,500
Schedule 8
<$5	25c	$10,000
>$5	5%	$10,000
Schedule 9
<$5	37c	$7,500
>$5	7.50%	$7,500
Schedule 10
<$5	50c	$5,000
>$5	10%	$5,000
Schedule 11
<$5	1.5c	$100,000
>$5	0.3%	$100,000

Description of quoting specifications for Market Makers

Minimum % of time to maintain two-way quotes

80% of the time from 10:15 until commencement of the Pre-CSPA (Closing Single Price Auction) Session State (generally 16:00) on any trading day.

Maximum Spread (Being the offer price less the bid price

The maximum spread referred to in schedules 1-10 above is based on the relevant Bid price in $AUD.

Minimum Quantity of Products in each bid and offer ($AUD)

The minimum quantity for Products referred to in schedules 1-10 is based on the Bid price for the bid quantity and Offer price for the offer quantity in $AUD.

Market maker arrangements