30 December 2014

Co-Authors

Justin Schack

Managing Director    
 

Akhil Bhatia

Director    
 

Andrew Upward

Vice President    
 

Anish Puaar

Associate    

Rosenblatt Securities Inc.    
New York +1 212 607 3100    

TRADING TALK
Rosenblatt's Market Structure News Digest

NYSE Plan Would Revamp Trading
— Wall Street Journal

The owner of the New York Stock Exchange is pushing a major overhaul of the U.S. stock market aimed at helping exchanges reclaim their role at the center of trading. Intercontinental Exchange Inc. is proposing a compromise between exchanges and Wall Street banks that trade on behalf of large investors. Exchanges would cut banks’ trading costs by more than 80% if they agreed to a rule that would move more trading away from their so-called dark pools and other off-exchange venues, according to a draft letter being circulated to large banks and investment firms by ICE Chairman and Chief Executive Jeffrey Sprecher.

Our Take: ICE’s letter made big headlines earlier this month, but the ideas in it are far from new. All of the points enumerated in the letter were put forth in ICE CEO Jeff Sprecher’s opening statement during a July market-structure roundtable convened by Rep. Scott Garrett (R-NJ), chair of the House Financial Services Committee’s Securities Subcommittee (see page 3 of this summary). So far it appears …

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