As exchange traded funds (ETFs) continue to heat up so do their volume on the American Stock Exchange. The industry expects the filings of these new products to continue and in response one industry insider says the Amex has been talking about creating a separate exchange.

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Larry Larkin, senior vice president at the Amex said he was not aware of any talks. "It sounds like a great idea but we have a viable exchange."

Larkin pointed out that new exchanges have been very popular and anyone could create an ETF exchange.

One industry insider said a new exchange would be marketing bliss for both an exchange and ETFs. "It would draw a great amount of attention and be a great marketing idea for the exchanges."

The source said that if the exchanges don't get into it now they are going to miss out. "It is a parallel to when the CBOE (Chacago Bored of Option Exchange) started. The exchange designated to options was highly successful and option volume went through the roof."

"The mutual fund business is an $8.6 trillion business. ETFs have a better structure than a stock or a mutual fund for an investor," he said. "People are starting to catch on to that. If exchanges don't get involved now they are going to miss out." 

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