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April 2015

Feature Article

Not All Market Makers Are the Same

by Jim Toes

It is safe to say that there exists a broader level of understanding on what equity market makers do versus market makers in any other asset class or product. This gap, if left unchecked, could cause unnecessary harm in the form of regulatory costs to those non-equity markets where the role of market makers and liquidity providers serve investors well. As an example, we would like to highlight the role of market making and liquidity provision in listed options as compared to the equity markets and how regulation has, and may continue to, acutely impact one market versus the other.

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News From the Hill

SEC Announces Agenda for May 13 Meeting of the Equity Market Structure Advisory Committee - 4.17.15

The Securities and Exchange Commission today announced that its Equity Market Structure Advisory Committee will hold its first meeting on May 13. The meeting will focus on Rule 611 of SEC Regulation NMS, known as the "Order Protection Rule" or "Trade-through Rule." Read full press release here

FINRA Board Approves Changes to Communications With the Public Rules, Trading Activity Fee - 4.16.15

The Financial Industry Regulatory Authority (FINRA) announced that its Board of Governors approved proposed changes to FINRA's Communications With the Public Rules, as well as amendments to the Trading Activity Fee for firms with no customers that are engaged solely in proprietary trading activity for their own accounts. Read full press release here

Testimony on the Fiscal Year 2016 Budget Request of the U.S. Securities and Exchange Commission - 4.15.15

Testimony by Chair Mary Jo White before the Subcommittee on Financial Services and General Government Committee on Appropriations United States House of Representatives. Read full testimony here

The Importance of Smart Regulation - 4.14.15

Rick Fleming addresses the NASAA Conference. "As you know, many people start with an assumption that all regulation is bad for business. Some lobbyists and politicians in D.C. certainly believe this, and while they may pay lip service to investor protection, the result of their consistent policy positions would leave investors naked and hungry. I am also aware that, sadly, some of your bosses back home harbor a fundamental belief that your work is an impediment to economic growth." Read full speech here

Bank Regulators at the Gates: The Misguided Quest for Prudential Regulation of Asset Managers - 4.10.15

Read SEC Commissioner Dan Gallagher's remarks at the 2015 Virginia Law and Business Review Symposium here

Opening Remarks to the Investor Advisory Committee by SEC Chair White - 4.9.15

"Today, I want to give you a couple of updates since your last meeting in February. And then I will just very briefly touch on some of what lies ahead that I think are of interest to this Committee." Read full speech here

Gregg E. Berman, Associate Director in the Division of Trading and Markets, to Leave SEC - 4.8.15

The Securities and Exchange Commission today announced that Gregg E. Berman, Associate Director of the Office of Analytics and Research in the Division of Trading and Markets, is leaving the agency later this month. Read press release here

Open Call

brought to you by Nasdaq

Europe's Unbundling of Commissions & Research - April 29, 2015

Please join us on a Open Call to discuss the much anticipated announcement by the European Commission on the unbundling of commission dollars to pay for research.

After receiving "technical advice" from the European Securities and Markets Authority, ESMA on MiFID II in December 2014, the European Commission, is close to offering "delegated acts" which should provide final guidance on how asset managers can obtain research from brokers.

Presenting on the call will be:

Duncan Higgins

Head of Electronic Sales

ITG in Europe

Click here for call details.

Taking Stock

brought to you by JonesTrading

Generating alpha through....ethics- April 14, 2015

by Joseph Holt, Management Professor

Mendoza College of Business

The University of Notre Dame

Preface by Jim Toes

Creating a culture of good ethical behavior is critical to protecting the reputation of any firm. C-Suite executives who carry this responsibility often employ a strategy that defines ethical behavior by requiring employees to adhere to rules, codes of conduct and other standards that help them avoid doing the wrong thing. In the opinion of Professor Joe Holt, Mendoza College of Business, this is the negative side of ethics. Now while this approach may be effective, Professor Holt encourages executives and individuals to consider the positive side of ethics as not just a way to avoid a bad outcome, but as a way to achieve greater success.

Read Professor Holt's article here

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UPCOMING EVENTS

Kansas City STA Annual Spring Event
May 7, 2015

The STA Events calendar keeps you informed on both national and local STA events. Join other security trading professionals to connect, learn and be inspired by the wide variety of panel discussions, keynote speakers, exhibitors and networking opportunities.

Brought to you by KCG

STA EVENTS CALENDAR