ON THE MONITOR
Market Access Proposal: Great in Concept but not in Practice
April 4, 2010
Broker-dealers and other market players give a thumbs-up for the Securities and Exchange Commission’s efforts to tighten controls on unfiltered sponsored or “naked” access to exchanges and other market centers.
But, judging by comments made to the SEC on its January 13 proposals to control market access (http://www.sec.gov/news/press/2010/2010-7.htm), opinion is mixed on whether the actual proposal either goes too far or not far enough.
The broker-dealer comments generally assert that brokers providing sponsored access should check customers orders prior to them being sent to exchanges or other market centers for execution, but only if those customers are unregulated trading firms.
Sponsoring brokers also rent out their market participant IDs (MPIDs) to smaller--but still regulated—brokers, providing them with pricing benefits and access to market centers they are not members of. Those broker customers should already apply checks to their orders, the brokers say in their comments which were due March 29 but continued to arrive through April 1.
THE WEEK AHEAD:
TUESDAY, APRIL 6
DATA: Minutes of Federal Open Market Committee
2 p.m., Federal Reserve Board
WEDNESDAY, APRIL 7
Through April 8, New York Information Technology Center, New York
OPEN MEETING: Rules and Reporting for Asset-backed Securities
10 a.m., Securities and Exchange Commission, 100 F Street NE, Room L-002
WEBINAR: Create Winning Strategies with the Cloud
1 p.m., Technology Executives Club
THURSDAY, APRIL 8
EVENT: SIFMA Society Breakfast with Regulators
8 a.m. Pacific time, The Schwab Center, 211 Main Street, San Francisco
SPEECH: Andrew Donohue, Director, S.E.C. Investment Management Division
9 a.m. Eastern time, Investment Management Institute, New York
THE WEEK THAT WAS:
SEC Names Griffin as First Chief Compliance Officer
Triple Play, as IDCG, LCH, CME Heat Up Clearing of Swaps
Citi Launches Next Generation Algorithmic Trading Platform
Mitsubishi, Morgan Stanley to Combine Operations in Japan
J.P. Morgan, S.A.C. Venture Investments Take Stakes in Derivix
Instinet Launches Corporate Access Service
European regulators to investigate high-frequency trading
Light is the key in SEC's market overhaul
