Nasdaq Expands ETF Business, Cboe Cuts Back Funds Operations

The Nasdaq stock exchange is expanding its exchange-traded fund, or ETF, business, hiring more staff to support its growing operations. In contrast, the Cboe Global Markets exchange is scaling back its funds business, trimming its staff and resources. According to a report, Nasdaq has been actively recruiting new talent to bolster its ETF team, with a focus on expanding its product offerings and improving its trading infrastructure. The exchange has reportedly hired several dozen new employees in recent months, including experienced professionals from rival exchanges and investment firms. Nasdaq's ETF business has seen significant growth in recent years, with assets under management increasing by more than 50% in the past 12 months. "We're committed to investing in our ETF business and providing our customers with the best possible experience," said a Nasdaq spokesperson. "We're excited about the opportunities ahead and believe that our expanded team will help us to drive growth and innovation in the ETF space." The spokesperson declined to provide specific details on the number of new hires or the cost of the expansion. In contrast, Cboe Global Markets has been downsizing its funds business, laying off several dozen employees and reducing its resources to focus on its core trading and listings operations. The exchange has cited declining revenue and increased competition in the ETF market as reasons for the scaling back of its funds business. Cboe's ETF assets under management have fallen by more than 20% in the past year, according to data from the Investment Company Institute. "Cboe is prioritizing its core business and focusing on areas where we can drive growth and profitability," said a Cboe spokesperson. "While we're scaling back our funds business, we remain committed to providing our customers with a wide range of products and services." The spokesperson declined to provide specific details on the number of layoffs or the cost of the downsizing. The differing strategies of Nasdaq and Cboe reflect the changing landscape of the ETF market, which has seen significant growth and consolidation in recent years. The global ETF market has grown to over $17 trillion in assets under management, with many exchanges and investment firms competing for market share. The expansion of Nasdaq's ETF business and the downsizing of Cboe's funds business are likely to have significant implications for the industry, with potential impacts on trading volumes, product offerings, and customer service. The current status of the ETF market is one of rapid growth and change, with many exchanges and investment firms competing for market share. The expansion of Nasdaq's ETF business and the downsizing of Cboe's funds business are likely to be closely watched by industry observers and investors. As the ETF market continues to evolve, it remains to be seen how these developments will shape the future of the industry.