The U.S. securities industry supports the idea of carrying out a pilot program to evaluate the impact of cutting “maker-taker” fees.<\/p>\n
Earlier this week, a regulatory committee recommended that the U.S. Securities and Exchange Commission (SEC) carry out a pilot program to test the impact of lower maker-taker fees on market quality and liquidity.<\/p>\n
A subcommittee of the Equity Market Structure Advisory Committee (EMSAC) suggested in its report that a pilot study would hopefully help reveal: the relationship among access fees, liquidity provision and market quality; the relationship between access fees, rebates and order-routing practices; and the potential impact of fees on the price discovery process.<\/p>\n
In response to the recommendations, the U.S. Securities Industry and Financial Markets Association (SIFMA) issued a statement indicating that it endorses this experiment.<\/p>\n
“SIFMA agrees with the basic elements of EMSAC’s subcommittee recommendations. We support centralized regulation of cross-market functions through a single markets regulator, or at the very least [self-regulatory organizations] whose focus is entirely on regulation,” says Randy Snook, executive vice president of business policies and practices with SIFMA, in a statement.<\/p>\n
In addition, SIFMA says it supports a pilot on so-called maker-taker trading models that would analyze the effects of reduced fees.<\/p>\n
The Canadian Securities Administrators (CSA) recently indicated that it does not intend to go ahead with a planned pilot to examine possible changes to maker-taker models because of the risk that inter-listed trading would migrate to the U.S. as a result. <\/p>\n","protected":false},"excerpt":{"rendered":"
The CSA is not going ahead with a similar planned pilot in Canada because of the risk inter-listed trading would migrate to the U.S.<\/p>\n","protected":false},"author":38954,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2318],"tags":[2358],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/282647"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/38954"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=282647"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/282647\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=282647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=282647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=282647"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=282647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}