Stephen McCauley

The Shifting Sands of Market Structure: Equity Trading in the Spotlight

Kevin Cowan, Stephen McCauley, Seth Marin, Sianna Mastofi, Jamil Nazarelli, Jatin Suravanshi

A panel of financial experts critically evaluated SEC Chair Mary Jo White's thirteen directives on market structure, debating the efficacy of policies like the Tick Size Pilot while highlighting risks posed by the proliferation of off-exchange trading venues. Discussions revealed significant industry opposition to specific provisions that could transfer wealth from investors to dealers, alongside concerns that high data costs and a lack of institutional disclosure standards act as hidden taxes on market efficiency. As regulatory deadlines approach in May, the consensus emphasizes the urgent need for empirical evidence-based reforms to address systemic issues in capital formation, ETF concentration, and the fragmentation of liquidity across lit and dark pools.