The Heavy Costs Of NMS Reform
Traders Magazine, March 2004
The trading industry could be reeling from the price tab for the proposed SEC NMS market structure reforms. The agency has estimated that it would cost $1 billion to implement the trade through proposals over the first two years. The SEC calculates it would cost order execution facilities about $247 million retooling technology. Then there is another $75 million a year in upkeep. Broker dealers would have to find close to $300 million to adjust systems for the opt-out and to report information to customers. The estimated annual maintenance bill is $207 million.
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