On Friday the SEC approved the Chicago Stock Exchange proposed speedbump as a 2 year pilot program, where CHX would be required to collect and report various statistics. It had received twenty comment letters on the CHX’s proposal, including several from market structure thought leader, R.T. Leuchtkafer. We’ll get to RTL in a few moments… As a quick refresher, CHX initially proposed a Liquidity Taking Access Delay (LTAD), which was withdrawn, and replaced with a proposal for a Liquidity Enhancing Access Delay (LEAD): LTAD proposed subjecting incoming takers to a 350ms software delay, effectively discriminating via speedbump against takers (more…)

  “We need the SEC to require tagging and disclosure of high-frequency trades and quickly implement a consolidated audit trail so that objective and independent analysts — in academia, private analytic firms, the media and elsewhere — are given the opportunity to study and discern what effects high-frequency trading strategies have on long-term investors. They can also help determine which strategies should be considered manipulative.” Pop quiz: Who said the above quote and when? Answer:  Former Senator Ted Kaufman (D-DE) said those words on September 28, 2010 in his final speech on the Senate floor. It’s been over seven years since Senator Kaufman (more…)

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Aug, 2017