FIA PTG again opposes Cboe EDGA proposal to introduce liquidity provider protection

21 October 2019

October 21, 2019 – In a letter filed with the Securities and Exchange Commission (SEC) today, the FIA Principal Traders Group (FIA PTG) again urged the SEC not to approve EDGA’s proposal to introduce an asymmetric speed bump. In addition to their overall concerns with various artificial latency mechanisms that have been proposed in the U.S. financial markets, FIA PTG said that this proposal goes too far in granting a material benefit to liquidity providers while negatively impacting other market participants. They went on to say that while liquidity providers are essential in our financial markets, it is important to balance the benefits and obligations associated with liquidity provision, and although many of our members would be eligible to utilize this benefit, we do not think it is the right approach for overall market structure and end investors.