As you all know, stock exchange business models have morphed radically in the last decade. Large portions of their business are bed-rocked in the selling of speed (colocation, data feeds, and data services) – as much as 50%. And as you all know, this morphing has been put in the spotlight with the public’s awakening to the role that high frequency trading plays in our modern equity markets. In the wake of Flash Boys and the arrival of IEX, class action lawsuits have emerged, including the suit against seven stock exchanges along with dark pool operator Barclays. In that suit, (more…)

  There is not much market structure talk coming out of the U.S. Senate these days.  The two senators who did focus on market structure (Sen. Ted Kaufman and Sen. Carl Levin) are now both retired. However, there is one senator, Senator Mark Warner (D-VA), who has occasionally focused on market structure issues.  During SEC Chairman Jay Clayton’s confirmation hearing in March, Sen. Warner pressed him on the issue of rebates and the maker/taker model. Sen. Warner has said that he believes the current exchange rebate fee schedule is a way to “game the system”.  He mentioned in the confirmation hearing that he had (more…)