Some products and services offered by the stock exchanges have been at the center of many market structure issues. Colocation, proprietary data feeds,  special order types and rebates all seem to favor one class of investor over another and promote an un-level playing field.  Since most U.S. exchanges (except for IEX and CHX) are public, for-profit companies, we would expect that they would do everything that they can to increase shareholder value.  But is this profit motivation causing significant conflicts of interest? Earlier this week NYSE announced that they received a Wells Notice from the SEC which indicates that the SEC may bring an enforcement action against them. (more…)

  Nasdaq has decided to withdraw their controversial proposal for a Retail Post-only order type.  The SEC noted this in a filing that was published yesterday: “On October 13, 2016, The Nasdaq Stock Market LLC (“Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) and Rule 19b-4 thereunder, a proposed rule change to amend Exchange Rule 4702 to adopt a new Retail Post-Only Order. The proposed rule change was published for comment in the Federal Register on November 1, 2016. On December 14, 2016, pursuant to Section 19(b)(2) of the Act, the (more…)