Schumer is calling for all trading venues to pay for regulatory surveillance based on volume.
Before the heads of the largest U.S. financial trading venues met in Washington D.
To get their take on the markets and their different trading venues, check out these videos.
Big corporations hedge away financial risks in the futures market on the Chicago Mercantile Exchange, among other trading venues.
Ironically, if fragmentation does occur, dealers see another role for themselves this time, as aggregators of liquidity from multiple trading venues.
He added that NYSE Arca, which many trading venues declared self-help against that day, is the primary listing venue for ETFs.
Dark pools are trading venues that trade outside of a stock exchange.
FORBES: Move Over NYSE And NASDAQ, There Are New Exchanges In Town
But that will depend on future capital charges for cleared and uncleared assets and the precise structure of trading venues, which are still not known.
Electronic trading has been a boon to the exchanges and alternative trading venues, which collect more fees when volumes soar regardless of which direction the markets are heading.
In fixed-income products, there are the over-the-counter trading venues.
High-frequency trading is back in the news with legislators and trading venues wanting to know more about these infamous traders that now make up about 70% of the trading volume.
Some 70% of all equity volume is driven by computer models that suddenly trigger a surge in buy or sell orders that are causing the fragmentation, volatility and use of hidden trading venues.
The SEC is hoping a uniform application of single stock circuit breakers across the dozens of U.S. trading venues will be a good antidote to volatile downward swings in the future.
U.S. stock exchanges are splintered into four major trading venues, not to mention other smaller venues and options exchanges, with NYSE Euronext controlling just 25% of the trading in its own listed shares.
Then there are the so-called dark pools, which are trading venues that don't quote bids and asks and are favored by hedge funds and other institutional traders that want to keep their trades quiet.
The SEC has already proposed a number of changes designed to address their growing influence, including extra restrictions on broker-dealers that provide direct market access to high frequency traders, a trader tracking system for large traders, circuit breakers that would slow trading in individual stocks if they fall more than 10%, and new rules for off-exchange trading venues.
Dark pools are known for cutting costs as some venues allow trading at the midpoint between the bid and the ask price.
Exchanges and execution venues in coordination with trading firms and clearing members have (or at least should have) an ethical obligation to create test environments and standards for system run-off tests, where all manner of market and technological scenarios bombard each system to verify its robustness.
FORBES: Memo to New SEC Chief: Ask the FAA How to Stop the Next Flash Crash
Such changes have allowed large market participants to employ sophisticated trading methods to trade electronically on multiple venues in huge volumes at very fast speeds.
FORBES: New Large Trader Rules Adopted; SEC Hopes To Better Monitor High-Frequency Trading
"By establishing a set of circuit breakers that uniformly pauses trading in a given security across all venues, these new rules will ensure that all markets pause simultaneously and provide time for buyers and sellers to trade at rational prices, " SEC Chairman Mary Schapiro said.
He expects some change, even without regulatory intervention, such as consolidation of venues, in part because low trading volumes are hurting profitability.
FORBES: High Frequency Traders And Current Market Structures Penalize Investors
Niki Beattie, chief executive of Market Structure Partners, a consultancy which works with banks and regulators, said that because exchanges are pursuing racing after trading revenues both for income and to validate their attractiveness as listing venues.
To ensure that local businesses comply with the trading and advertising laws and to protect the Olympic brand and sponsors, nearly 300 Olympic enforcement officers will patrol around venues before and during the games.
FORBES: Olympic Hurdles For Advertisers: The Games' Unique Rules And Restrictions
应用推荐