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Brookmont moves its cat bond ETF listing to the Texas Stock Exchange
The fund, ticker ILS, will keep the same symbol, while Brookmont aims to add a lead market maker within weeks to improve liquidity for catastrophe bond exposure.
Brookmont Capital Management, LLC plans to move the listing venue for its Brookmont Catastrophic Bond ETF strategy to the Texas Stock Exchange, effective September 18. The ETF, ticker ILS, was launched and listed in early April on the NYSE ARCA platform, and the firm said the ticker symbol will remain unchanged and there will be no change for investors in the strategy.
The shift is designed to broaden participation from market makers, a challenge the firm faced after the ETF launch. Brookmont cited that catastrophe bond fund exposure can be difficult to hedge, and said it is hopeful a Texas Stock Exchange listing can make the lead market maker onboarding process simpler.
Brookmont said the Texas Stock Exchange has a program that supports lead market makers with compensation in a more transparent and direct manner, and that it hopes to name a lead market maker within just a few weeks. Artemis also reported that the ETF has grown steadily to more than $95.6 million in assets as of this month, with assets up about 13% over the prior 10 trading sessions.
The outlet added that growth was driven primarily by net investor inflows, with trading described as orderly and the market price staying closely aligned with NAV. Bid-ask spreads were reported at around 10 basis points on a median basis as the ETF approaches the $100 million milestone.