Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

Traders Poll

Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?




Free Site Registration

January 2, 2014

SIFMA Seeks SIP Overhaul

By

Peter Chapman

The Securities Industry and Financial Markets Association wants a sweeping overhaul in the way the Securities Information Processors, or SIPs, operate.

In a November letter to the Securities and Exchange Commission, the broker-dealer lobbying group called the current operation governing the distribution of market data "outdated" and needing a revamp. The letter followed SEC demands that SIP operators establish plans of action in the event of malfunctions.

An outage in August of the Nasdaq-run SIP that halted trading in Nasdaq-listed securities prompted the SEC concern. SIFMA told the SEC that it was "imperative" that broker-dealers participate in the drafting of any plans and also petitioned the regulator to change the way the SIPs are governed and operate.

Currently, broker-dealers act only as advisors. SIFMA maintains that arrangement is ineffectual and that brokers and buysiders should become direct representatives at SIPs with voting power. In addition, SIFMA wants the SEC to require the SIPs to provide full financial disclosure, including tape revenue allocations, and to expand the number of industry players that can act as SIPs. Nasdaq and NYSE, operators of the SIPs, would not comment.


(c) 2014 Traders Magazine and SourceMedia, Inc. All Rights Reserved.
http://www.tradersmagazine.com http://www.sourcemedia.com/