Commentary

Peter Maragos
Traders Magazine Online News

Rebate Debate Misses the Mark

Dash Technologies' Peter Maragos weighs in on the market rebate debate - saying there is nothing intrinsically wrong with rebates, per se. However, there is a problem with the brokerage industry’s dominant fee model.

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November 1, 2004

NYSE Providing More Hybrid Details

By Editorial Staff

The New York Stock Exchange is responding to pressure from regulators and the industry to clarify its hybrid market proposal. The Securities and Exchange Commission and the Securities Industry Association as well as other commentators - have publicly said the Big Board's proposal is cryptic. More precise information was needed on the exchange plans to increase its number of automatic executions.

Annette Nazareth, the SEC's director of market regulation, told the Security Traders Association's annual conference in Boca Raton that the NYSE's proposed enhancement of its Direct+ auto-execution system is part of the hybrid market structure "puzzle and also a bit puzzling." Nazareth later told reporters she expects the Big Board to provide more details.

The SIA dispatched a six-page comment letter to the SEC. "The current proposal is incomplete and lacks important details and concrete examples of how the system will operate," the SIA stated.

Bob McSweeney, the NYSE's senior vice president for competitive position, said in early October that the Big Board planned to elaborate on all these points. An SEC filing would provide specific details "sometime in the next several weeks," he said.