24 July 2017
Download the paper now.

Nyse comments on SEC Reg NMS

13 January 2005  |  1716 views  |  0 Source: New York Stock Exchange

The New York Stock Exchange today submitted its comment letter on the Securities and Exchange Commission’s proposed Regulation NMS, supporting the overall proposal and recommending removal of one specific alternative proposal as harmful to investors, markets and U.S. competitiveness.

In its letter, the NYSE agrees with the SEC that Reg NMS should provide a framework for a market structure in which investors receive the best price on their trades, while at the same time giving them the benefit of competition among the various markets. It should also achieve the stated objectives of promoting the ability of investors to choose among markets and lowering costs for investors and issuers.

However, for one crucial piece of the proposal – the trade-through rule – the SEC has proposed two alternatives:

The NYSE supports the first alternative, which would protect the best bid and offer in each market. "This proposal will encourage investors to aggressively quote so that they are the best bid or offer in their market of choice by providing them with the assurance that their best quotes will not be traded through. This proposal also will lead to tighter spreads, greater liquidity and equal treatment of all types of investors," the NYSE’s letter states.

In contrast, the second alternative would mandate depth-of-book (DOB) order routing and effectively transform our competing markets into a homogenized, government-mandated utility. "Until now, the Commission has successfully maintained the important balance between order competition and market competition that the 1934 Act requires. However, mandatory DOB routing eliminates intermarket competition by requiring that markets route orders to any displayed limit order in any market center," states the NYSE’s letter. The letter adds that this proposal would create a virtual consolidated limit-order book (CLOB), a concept that the SEC has rejected in the past and should do so again.

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.worldpaymentsreport.comvisit www.finastra.com

Top topics

Most viewed Most shared
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
10793 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
9670 views comments | 16 tweets | 12 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
8421 views comments | 25 tweets | 16 linkedin
PayPal strikes deals with Chase and CitiPayPal strikes deals with Chase and Citi
8336 views comments | 10 tweets | 5 linkedin
UK judge blocks £14bn class action suit against MastercardUK judge blocks £14bn class action su...
8278 views comments | 5 tweets | 6 linkedin