Thursday, March 11, 2010

Equity Trader Alert #2010 - 15
NASDAQ to Begin Listing Two New ETFs on Friday, March 12, 2010

When will the new ETFs be listed?

Effective Friday, March 12, 2010, The NASDAQ Stock Market^® plans to begin trading two new Exchange-Traded Funds (ETFs):

• First Trust ISE Global Platinum Index Fund (symbol: PLTM) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the ISE Global Platinum Index (PLTM Index). PLTM’s investment objective and the PLTM Index may be changed without shareholder approval. The PLTM Index uses a modified linear weighted methodology adjusted by revenue exposure to PGM production, where component stocks are grouped into linearly weighted quartiles and then equally weighted within each quartile.
• First Trust ISE Global Copper Index Fund (symbol: CU) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the ISE Global Copper Index (CU Index). CU’s investment objective and the CU Index may be changed without shareholder approval. The CU Index uses a modified linear weighted methodology adjusted by revenue exposure to copper production, where component stocks are grouped into linearly weighted quartiles and then equally weighted within each quartile.

For more information, refer to the Informational Circular on the NASDAQ OMX Trader^® website.

How will these ETFs be traded?

The new ETFs will be designated as NASDAQ Global Market^SM securities.

How will data for the new ETFs be disseminated?

Quotation and trade data for ETFs are disseminated via UTP Level 1^SM, NASDAQ Basic, NASDAQ Level 2^SM and NASDAQ TotalView^® using the trading symbols listed above.

NASDAQ OMX will also begin disseminating daily valuation information for the new ETFs on March 12^th. These daily valuations will be posted on the NASDAQ OMX Trader website as well as disseminated through the NASDAQ OMX proprietary index data services with the following data elements and identifiers:

Will there be a Designated Liquidity Provider for these ETFs?

In July 2007, NASDAQ^® introduced the ETF Market. The centerpiece of The NASDAQ ETF Market is the Designated Liquidity Provider, a market maker who has been selected to maintain liquidity in qualified ETFs (i.e., Qualified Securities). Designated Liquidity Providers will be selected through a consultative process between ETF sponsors, market-making firms and NASDAQ.

The Designated Liquidity Provider for the ETFs will be Kellogg Capital Markets.

How can I register as a market maker in these ETFs?

You may register as a market maker by contacting NASDAQ OMX Trading Operations at +1 212 231 5100. Market makers in these new ETFs can register beginning Friday, March 12, 2010.

All purchasers of newly issued ETFs must receive a prospectus or product description.

Where can I find additional information?

For questions regarding the new ETFs, please contact:

• Coleen Lynch, First Trust Portfolios L.P., at +1 630 517 7660
• NASDAQ OMX Global Index Group at +1 301 978 8284
• Will Slattery, Vice President, NASDAQ Listing Qualifications, at +1 301 978 8088

For questions regarding the trading of the ETFs on NASDAQ, please contact:

• Transaction Services U.S. Market Sales at +1 800 846 0477

For questions about quotation and trade data for the ETFs, please contact:

• NASDAQ OMX Global Data Products at +1 301 978 5307

For all other systems-related questions, please contact:

• NASDAQ OMX Trading Operations at +1 212 231 5100