Equity Market Structure
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Round-Lots, Odd-Lots Push Forward, while SEC Delays Tick Size and Access Fees
Equity market structure is back on the agenda, with multiple rules in motion and delays in certain compliance dates. Yesterday, the redefinition of round-lot sizes and the change for the securities information processors (SIPs) to …
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25 Years of CSTA: A Look at Canada’s Trading Transformation
This year marks the 25th anniversary of the Canadian Security Traders Association (CSTA), a milestone not just for the organization, but for the entire sell-side trading community. With the annual conference fast approaching, we are …
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The Buy Side Seeks Liquidity in Hosted Pools
There is a lot of buzz around the rise of private rooms or hosted pools within alternative trading systems (ATSs), reflecting the latest wave of innovation in equity market structure. But what is the buy …
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SEC Updates Tick-Size and Access-Fee Rules, Industry Reacts
Retail and institutional investors will soon be able to trade in smaller increments on most U.S. stocks, as part of the SEC’s plan to overhaul equity market structure rules. On Sept. 18, the SEC’s five …
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SEC Rule 605 is Final, But More is Pending with Market Structure
With the SEC approving updates to Rule 605 on order disclosure for stock trading, the clock will soon begin ticking on a new compliance project with more granular execution quality data. But industry observers are speculating that the SEC could move forward with other equity market structure reforms, resulting in overlapping timelines.
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What’s Next for the SEC’s Equity Market Structure Proposals in 2024?
Heading into 2024, US broker-dealers are anticipating a decision by the SEC on its four-equity market structure proposals, a set of rules which seek to revamp stock trading for both retail and institutional investors. But an additional proposal to ban volume-based pricing tiers could inject more complexity into the regulatory outlook for 2024.
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A Year in Review: Top Blogs in 2023
While the hottest topic in financial technology for 2023 was undoubtedly the rise of ChatGPT and large language models, other topics like consolidation of the buy-side trading desk, and the impact of T+1 on the sell-side remained in serious contention
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Consensus Emerges in Industry Reaction to SEC Stock Trading Overhaul
Industry participants have weighed in on the Securities and Exchange Commission’s proposals to revamp equity market structure, with many urging the regulator to take an incremental approach, to implement the transparency proposal and drop the controversial auction proposal.
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What’s Next for the Buy-Side Trading Desk?
One of the major themes for 2023 is the emphasis on multi-asset trading and the focus on efficiency and scalability across regions and countries. In the past, a trader focused on a single asset class such as equities or bonds, whereas today with the migration to electronic trading, the desk can automate workflows and manage executions across all asset classes.
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Top Sell-Side Trends for 2023
What are the top market structure issues for sell-side firms in 2023? With the new year off to a fast start, brokerage firms are facing a variety of evolving issues that could impact their trading businesses. On the horizon are proposed regulations to reform U.S. equity trading, increased best execution obligations, innovations in ATSs, 24-hour trading, and shortening the settlement cycle to T+1.
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A Year in Review: Top Blogs in 2022
As we look back on this year, topics such as institutional adoption of digital asset trading, European trading in response to geopolitical risk, and the SEC’s plans to revamp U.S. stock trading rules dominated the headlines. In 2022, we covered those topics and much more including the growing sophistication of AlgoWheel, and the evolution of the buy-side fixed income EMS.
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Auctions Loom Large in SEC’s Equity Market Overhaul
At the Security Traders Association (STA) 89th Annual National Market Structure Conference held in Washington DC in October, brokerage executives reacted to the concept of auctions as well as other ideas on SEC Chair Gary Gensler’s agenda to revamp equity market structure. But the industry’s top wholesalers and brokerage executives speaking at STA emphasized that the stock market is functioning well for retail investors and cautioned against making a litany of changes that could lead to worse results.