In a letter filed with the Securities and Exchange Commission (SEC), the FIA Principal Traders Group (FIA PTG) commented on the four recently proposed equity market structure reform rulemakings. FIA PTG said that despite the complexity in the current national market system, investors enjoy an ease of access that has allowed for the democratization of the financial markets at ever-decreasing costs and that the SEC should avoid over-regulating without a clear vision of the problems to be solved. Specific to the proposals, FIA PTG supported the SEC’s proposed enhancements to Rule 605, and could support certain evidenced-based adjustments to minimum pricing increments, and modifications to round lots; however, FIA PTG believes that following adoption of these changes, the SEC should pause any further changes to the national market system and assess whether additional changes are needed. FIA PTG urged the Commission to take a thoughtful, methodical approach to considering the proposals.
- Equity Market Structure