“Its structure is very unusual in retail trading,” said Tyler Gellasch, executive director of the Healthy Markets Association and a former SEC counsel. “I would expect regulators might have a lot of questions about how the firm manages its conflicts of interest.”
“Many are waking up now to the reality that two Democratic commissioners at two little regulators may stand in the way,” said Tyler Gellasch, a former aide to Stein who’s now executive director of the Healthy Markets Association, whose members include mutual funds and other large investors. “They don’t get to write the rule, but they can stop it.”
Healthy Markets Association Executive Director, Tyler Gellasch discusses latest efforts the association has undertaken with its Broker/Dealer questionnaire in this Markets Media article available here.
Amazon.com Inc., which last month missed out on helping build a database to track more than 50 billion U.S. stock orders a day, just got a consolation prize: a smaller version of the project for academics.
The Healthy Markets Association is developing a tool to examine stock trading with Amazon Web Services, the Seattle-based company’s cloud platform, and trading-analytics company MayStreet, according to a statement Monday from the investor advocacy group.
The Healthy Markets Association, an industry organization focused on market transparency and integrity, has released an order-routing due-diligence checklist.
The 200-item questionnaire, which is available to members and non-members, spans issues that include general firm information, technology, order-routing strategies, venue monitoring, conflict and leakage, third-party relationships, as well as treatment of non-directed orders.
“IEX has the potential to greatly improve equity trading, but the proof will be in the prints,” says Tyler Gellasch, executive director of Healthy Markets, a non-profit group focused on market structure reform.
“If IEX protects investors and reduces investors’ trading costs, then investors and brokers may flock to it, and other venues may recognise that they don’t necessarily have to indiscriminately chase all HFT to remain profitable,” says Mr Gellasch.
‘’If IEX doesn’t deliver, then investors and brokers will quickly look elsewhere. That would leave us pretty close to exactly where we are today,” says Mr Gellasch.
IEX’s solution, Macey said, is to put a kind of speed bump along the motorcyclists' or the high-speed traders’ paths so they can’t make such a maneuver.
“So they're not going to be at a distinct advantage they might be on many of the other current exchanges and other venues,” said Tyler Gellasch, executive director of Healthy Markets Association, a group of institutional investors.
IEX is already operating as a private trading venue. It's not clear how much influence it would have as a public stock exchange. But Gellasch said brokers would be forced to route trades through IEX in its public form — if it offers the best prices.
"The SEC has increasingly allowed for-profit exchanges to engage in activities to benefit their bottom lines,” said Tyler Gellasch, a former Democratic SEC staffer who is now head of a trade group for asset managers. “The IEX application is forcing the SEC to look at what it allows exchanges to do, and justify why all of that is OK.”
"Any time an exchange wants to do something significantly different, it's likely to come under a lot of scrutiny and take a long time," said Tyler Gellasch, executive director of investor trade group Healthy Markets.
“The blueprint adopted today will provide just a fraction of the information regulators need and investors deserve,” said Tyler Gellasch, a former aide to Ms. Stein who now runs the Healthy Markets Association, a group that advocates for the SEC to rely on better data to police trading.
Continue reading via Wall Street Journal here
“We hope the SEC realizes that it doesn’t have to go down this road to approve IEX,” said Tyler Gellasch, the executive director of Healthy Markets and a former SEC official. “I think most folks in the markets immediately recognized that the SEC’s proposal to approve all speed bumps under one millisecond would make the markets a lot more complex and potentially a lot less fair.”
Continue reading on Bloomberg here.
“While the SEC’s interpretation seems to open the door for IEX, it may also open the door for enormous unintended consequences,” says Tyler Gellasch, executive director of Healthy Markets, a non-profit group focused on market structure reform.
“Rather than just deciding one thing, they would be deciding a lot of very complicated issues. The minute you go down this road you don’t know where it goes.”
Continue reading via Financial Times here
Users of the US equity options market fear they face higher costs as the latest industry consolidation involving Nasdaq is not seen alleviating a fragmented landscape of trading venues.
Continue reading via Financial Times here
Institutional Investors have flocked to private trading venues to protect sensitive information, but new legal actions highlight the need for more regulation.
Continue reading via Institutional Investor here
"The most likely hangup with the SEC was their order router,” said Tyler Gellasch, a former SEC staffer.
“Now that IEX has offered to revise its order router, which would arguably have given IEX a competitive advantage over other market centers, we suspect the odds of approval by the SEC to be very high,” said Gellasch, now head of a trade group representing asset management firms.
Exchanges’ roles in our market structure have devolved so much so in recent years that when the SEC put together its Equity Market Structure Advisory Committee last year, it didn’t even bother to include the NYSE and Nasdaq. In an effort to restore their market share and role in the markets, exchanges have been looking to aggressively expand and diversify – into brokers’ turf and order routing services.
The additional information available for public view will spur some traders to be more selective in choosing which ATS to use, said Tyler Gellasch, executive director, Healthy Markets Association, Washington, a non-profit group of money managers focusing on issues such as transparency and best execution at ATS and dark pools.
“Enhanced disclosures will indirectly mean some venues that are relatively fungible will likely see lower trading volume activity,” Mr. Gellasch said, and thus “indirectly, the brokers and investors vote with their feet.”
“Why would a broker risk routing orders to a venue with a significant conflict of interest when it can route to another without the conflict and receive similar quality?” Mr. Gellasch asked.