NEW YORK & LONDON--(BUSINESS WIRE)--Contrary to recent, highly-charged political, legislative and financial media scrutiny and criticism, confidence in US equity market structure is seen as strong. According to a TabbFORUM survey following SEC Chair Mary Jo White’s June 5th speech, where she presented her 13 directives on equity market structure, 56% of the 232 industry professionals polled in July reported high or very high confidence and only 18% reported weak or very weak confidence.
Since taking office in April 2013, when TabbFORUM surveys indicated the lowest confidence, Chair White has taken a ‘disciplined and data-driven approach’ to enhancing equity market structure. She has also stressed the importance of making ‘clear-eyed, unbiased, and fact-based assessments’ with the creation of a new market structure website with empirical data and a Market Structure Advisory Committee comprised of diverse experts.
In that same spirit, say TABB senior analyst Sayena Mostowfi and research analyst Valerie Bogard, who co-wrote “SEC Chair White’s Market Structure: The Industry Votes,” TABB Group surveyed buy- and sell-side market participants as well as regulators, legislators, academics, consultants, vendors and media as to whether they agreed with Chair White’s 13 targeted directives as well as other hotly debated issues.
With media and legislative inquiries into equity market structure at an all-time high, the spotlight has perhaps never been brighter, says Mostowfi and for the most part the market does want change. As proof, Bogard explains that “a majority of participants voted for changing maker-taker pricing, revising the $.0030/share access fee cap, reviewing the functions of exchanges versus ATSs, and implementing some type of tick pilot plan.” The desire for change and reassessment exists, despite the fact that most participants reported high level of confidence in the market structure.
These sentiments exist as other less electronic asset classes are looking at US equity market structure for guidance on what and what not to do as they build out their structures.
“Other economies around the world are also paying attention,” says Mostowfi, “added attention that ups the ante as the equity industry tries to answer which parts need to change and what can remain the same.”
The 14-page, 13-exhibit report can be downloaded by TABB Group Research Alliance Equity clients and pre-qualified media. The Executive Summary is available at www.tabbgroup.com. To purchase the report, write to info@tabbgroup.com.
Past TABB surveys have followed the Flash Crash, Facebook IPO glitch, Knight Capital trading error, AP twitter hack, or “Hash Crash,” and publication of “Flash Boys.”
About TABB Group
Based in New York and London, TABB Group is the research and consulting firm focused exclusively on capital markets, based on the interview-based, “first-person knowledge” research methodology developed by Larry Tabb.
