How Sifma Plans to Reform the U.S. Equity Market

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July 14 (Bloomberg) -- Ken Bentsen, president and CEO of the Securities Industry and Financial Market Association, discusses Sifma's proposed stock market reforms with Pimm Fox and Keri Geiger on "Taking Stock." (Source: Bloomberg)


Tells about the proposals.

Thank you.

This is something that our members feel very strongly about.

Market participants from all facets of the markets from very large retail houses to interdealer brokers to asset managers to large dealers and coming together to come up with a list of concrete, tangible recommendations that we believe the securities and exchange commission can adopt in short order.

Those included either a laminating or greatly reducing market access fees, limiting or putting a floor on who has quotations, so we do with the fragmentation and complexity of the market right now.

Look at data dissemination and say everyone should have access to the same data as a same time as opposed to what we have now were some can get private data feeds i had a big -- i had -- ahead of data from the sif.

Also, institutional customers and the disclose of they get in terms of order restitution and how that operates.

Just quickly, these type of reforms that you are putting forth are similar to other reforms and other regulatory agencies such as the fcc, the surgeon attorney generals are putting forth.

How do you separate this from the rest of the pack and how that is going to change this market, which is so under scrutiny right now?

Let's start with the premise that the markets today are more efficient than ever before in terms of execution and in terms of price as it relates to spreads and commission.

There is no question that the markets are more complex, fragmented, and clearly that is serving to undermine investor trust and confidence.

We think that the recommendations that we put forward dovetailed very nicely with much of what chair white announced a few weeks ago.

This is something our members have been working on for many years.

At the highest level of our organization, across the different types of firms from across the country, really came together and what we think this does is to provide varied raw-based support for market art is offense, both the buy and sell side, both institutional and retail behind a package of reforms that we believe can help buttress investor trust and confidence in the market.

Ken, are these proposals already supported by their membership?

Have they signed off on this?

That is right.

This is something the board adopted last week and that is what we are releasing it today.

You don't need any government action in order for your trade group to agree to all of these rules?

No, but much of these have to be adopted either by the sec and or fan rough.

This is market participants, buy side and sell side putting forth to the regulators to adopt.

Barclays is under fire for some issues related to high-frequency training -- trading.

Do you think that creates a conflict of interest or issues with how certain members are already participating in the market for these regulations to take effect?

I do not think it does because what we're saying here is a list of recommendations to the regulators to adopt.

Our market structure is adopt -- is a product of rules adopted by the as ec and the different market participants react differently to those will.

-- to those rules.

We say it is time for regulators to go back and make additional changes to the market to do with data dissemination, complexity, and transparency and fairness that we think will benefit and make the arc is more efficient than they are today and most importantly, help buttress investor trust and confidence in the market.

Stock trading volumes are down.

If these proposals are adopted, what will happen to liquidity?

We hope that these will help improve liquidity.

We hope they will help improve price transparency.

Certain aspects of trading volumes are not necessarily related to the rules but we do think that if you deal with complexity, you do with fragmentation, you do with data dissemination and disclosure that you are going to give it investors greater confidence in the market and that should help with liquidity and help with trading volumes.

A lot of trading volumes are

This text has been automatically generated. It may not be 100% accurate.


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