Summit Notebook

Exclusive outtakes from industry leaders

Audio-Amex’s plans to stay ahead in the ETF game

May 7, 2007

wolkoff1.jpgNeal Wolkoff, CEO of the American Stock Exchange, has a plan to stay ahead in the area of Exchange-Traded Funds, or ETFs. While ETF’s have traditionally been built to track a fixed index, Wolkoff explained to the Reuters Exchanges and Trading Summit that the Amex has patented software which allows ETFs to track an actively managed portfolio of stocks. Amex, which is in talks with potential issuers for such an actively managed ETF, sees such securities as having some key advantages over mutual funds. For one thing, they would offer more price transparency. For another, they’d be more liquid, since investors could buy or sell them any time during the day at their price at that moment, unlike mutual funds, which are only priced once a day.

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