What to Make of 1656 Pages of SEC Proposed Market Structure Reforms

In Episode 50, we bring together an all-star cast of market structure experts to dig into the SEC's proposed equity market structure reforms that total some 1656 pages of reading.  Our guests first try to explain what the SEC is hoping to accomplish with its proposed rules, and what changes, if any, Canada will need to mimic.  We then tackle several of the important proposals in detail including tick reform, access fees, new round lot definitions and the relevance of the NBBO, order transparency, retail auctions and best execution.  We finish with musings over bargaining chips the SEC can dangle to get some of the most important reforms across the finish line, because it is not clear if all of these rules will survive industry scrutiny and potential litigation. 

Chapter Headings: 

5:40 – What is the SEC Trying to Accomplish?

10:30 – What Rules, if Any, Does Canada Need to Mimic?

17:40 – Buy Side Concerns with Tick Reform

25:05 – Impact of Lower Access Fees on Liquidity

33:45 – Data – Will the Industry be Overwhelmed?

43:20 – Order by Order Competition – Retail Auctions

49:20 – Information Leakage During Auctions

58:10 – Regulation Bes Ex – Read Through for Institutions

1:06:40 – Gensler – Potential Bargaining Chips

Host: Peter Haynes, Managing Director and Head of Index and Market Structure Research, TD Securities

Peter joined TD Securities in June 1995 and currently leads our Index and Market Structure research team. He also manages some key institutional relationships across the trading floor and hosts two podcast series: one on market structure and one on geopolitics. He started his career at the Toronto Stock Exchange in its index and derivatives marketing department before moving to Credit Lyonnais in Montreal. Peter is a member of S&P’s U.S., Canadian and Global Index Advisory Panels, and spent four years on the Ontario Securities Commission’s Market Structure Advisory Committee.

Guest 1:Mehmet Kinak, Global Head of Equity Trading, T. Rowe Price 

Guest 2: Jim Toes, President, Security Traders Association

Guest 3: Doug Clark, Head of Equity Product Design, TMX Group

Series Link:https://www.tdsecurities.com/ca/en/bid-out

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