We are pleased to hear that BATS has decided to change the way that order id numbers are generated as a result of client demand. Particularly, it has announced that an order id number attached to hidden orders can now be randomized, if the client chooses to do so. We would like to commend BATS for taking this proactive step to address their client concerns. We would also like to commend the U.S. institutional investors who have voiced their concerns about the distribution of some questionable data.
We were pleased that our latest white paper was able to help shed some light on this market structure detail of which many institutional investors were unaware. We have also seen a similar response to our paper from some European market centers. They recently changed the way they report data from their dark pools in response to European institutional investors who had demanded change and had redirected their order flow to other market centers.
We encourage other market centers in the U.S. to address this issue and implement similar changes to their systems.