In January we wrote about the SEC’s new formal forum, the Equity Market Structure Advisory Committee (EMSAC), through which it wants to receive advice and recommendations on equity market structure issues. EMSAC contains seventeen members – which is larger than allowed by the Jeff Bezos “Two Pizza Rule.” EMSAC includes a few wise investor-friendly representatives – like Kaufman, Cronin, Kinak, Katsuyama, and Stone. However, it also includes only one member from a bulge bracket broker – Barclays, only one member from a stock exchange – although that exchange does not list public corporations, and it includes one member from (more…)
The folks at Nasdaq never cease to amaze us. Rather than focusing on adding value to their listed public companies, they seem to be constantly looking for ways to disadvantage some of the least sophisticated market participants – the retail investor. The latest proposal from Nasdaq is yet another order routing scheme designed to hand over valuable order flow information to their electronic market maker clients under the pretense of “price improvement”.