Dalia Blass could tackle fiduciary standard as first order of business at SEC

Ms. Blass has the chops to navigate a controversial rulemaking like fiduciary duty, according to Tyler Gellasch, executive director of the Healthy Markets Association and a former counsel to SEC Commissioner Kara Stein.

"Directing the staff is only part of the job; it's also about working with the commissioners to find consensus," Mr. Gellasch said.


"That could fundamentally change how retail investors invest in the markets," said Mr. Gellasch. "You could have a real significant change in how we think actively managed funds should look. It will be interesting to see how she addresses the risks that come with a lack of transparency in funds that are traded in real time."

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Treasury Preps Market Review

“Just by the number of meetings they have been having and the discussions, there are signs that this is not a knee-jerk, ideological report but a much more thoughtful and carefully measured study and recommendations,” he said. “They were very careful not to tip their hand as to one side of things or the other. I was very encouraged by the types of questions that they brought to the discussion. They are looking at the key issues for market participants.”

Although the Treasury has not announced when it will publish its capital markets review, Gellasch senses that the regulator is close to shifting into a new phase. “They made it clear that they are wrapping up some of the outreach,” he said.

Continue reading on Markets Media here.

Wall Street Wins Round in Fight With Exchanges Over Audit System

“It’s not surprising that the funding structure is under scrutiny,” said Tyler Gellasch, a former SEC official who’s now at the Healthy Markets Association, a market-structure advisory group with members including OppenheimerFunds and Janus Capital Group. “It is surprising that it’s taken this long for the SEC to show any inclination that it appreciates the conflicts of interest posed by having one set of for-profit entities setting the costs for other market participants, including some of their competitors.”

College Kids Pitched on a Secret Stock Exchange to Help Pay Off Student Debt

“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.”

Empty seats at regulators hold back Trump bid to undo Dodd-Frank

“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.”

Amazon Gets New Foothold in Stock Market Tracking, After a Miss

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.

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Order Routing Under the Microscope

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.

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IEX: US equity market upstart has to prove slow is best

“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.

Continue reading on Financial Times

SEC decision on new stock exchange imminent

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.

Listen to the full story on NPR's Marketplace here.

IEX Foes, Allies Unite on One Point: A Millesecond Really Counts

“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.

IEX's ambitions to test SEC's rules


“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

PoliticoPro: Financial Services Whiteboard

"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.

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