(FLASH FRIDAY is a weekly content series looking at the past, present and future of capital markets trading and technology. FLASH FRIDAY is sponsored by Instinet, a Nomura company.)

T-minus three weeks until Kevin Skarbek, Managing Director of Order Routing, Relationship Management & Market Structure at Charles Schwab, steps into the role of Security Traders Association Chair.

He will take the reins from 2025 STA Chair Julie Andress, who succeeded Jim Hyde, who followed Ryan Kwiatkowski.

Skarbek brings over 20 years of trade desk experience and a deep understanding of how retail execution has evolved. His background spans roles at G1X/SIG and nearly two decades of active STA involvement through STA Chicago, where he served as President in 2020 and currently leads the affiliate’s scholarship initiatives.

Now, as he prepares to transition from Vice Chair of the STA Executive Committee to Chair, Skarbek is focused on navigating the organization through a period marked by extended trading hours, regulatory evolution around transparency and best execution, and emerging technologies like AI and tokenization. In this conversation with Traders Magazine, he discusses STA’s 2026 priorities, the importance of education in an increasingly complex market, and how the organization’s grassroots structure positions it to help members adapt to what’s next.

What’s your vision for STA’s priorities in the year ahead, particularly as market structure and regulatory discussions continue to evolve?

Our 2026 priorities fall into two core areas: how we engage with Washington, D.C. – including the SEC, FINRA, and Congress – and how we interact with STA members, our advisory committees, and the broader financial services community.

STA is a grassroots organization that relies heavily on the dedication of volunteers. Whether it’s service on an Affiliate board or participation in one of STA’s four Advisory Committees, it’s critical that volunteers feel their time is well spent and that any perspective we put forward is accurate, thoughtful, and reflective of our diverse membership.

On the regulatory front, our agenda spans equities, listed options, and ETFs. Key areas of focus include extended trading hours, potential updates to Regulation NMS, the delisting of U.S. securities due to Executive Orders or government sanctions, and the ongoing discussion around ETF share class structures. These issues continue to evolve, and STA will remain committed to providing balanced, informed input that helps policymakers and industry participants navigate the changing landscape.

Given your deep experience in order routing and execution at Schwab, how do you see the current U.S. equity market structure adapting to the growing retail participation and ongoing regulatory proposals around best execution and transparency?

As retail participation continues to grow and as regulatory proposals around transparency and order handling move toward implementation, education will remain at the center of the industry’s response. Whether it’s explaining how new products work, how order-routing decisions are made, or how evolving rules may affect execution quality, the focus will be on ensuring that investors have clear, accurate information. U.S. equity market structure is highly adaptive, and as it continues to evolve, the combination of robust education and thoughtful regulation will play a key role in maintaining investor trust and market integrity.

Providing educational resources for self-directed investors is a key factor in obtaining new investors and maintaining existing ones. Broker-dealers invest heavily in this area and investors benefit. As new products come to market and regulatory proposals advance toward implementation, education will be at the core of the industry’s response.

How do you think STA can help members navigate innovation while maintaining fairness and efficiency in the markets?

Navigating innovation while preserving fairness and efficiency in the markets is not a new challenge for our industry. Financial services has always been highly competitive, and that competition ultimately benefits investors by giving them choice among broker-dealers and driving firms to improve their technology, execution quality, and resiliency.

STA’s role is to help members understand how new legislative and regulatory initiatives will change market structure. Through education, open dialogue, and sharing best practices, we help professionals stay informed, adapt to innovation, and remain committed to a market structure that is fair, efficient, and resilient for all participants.

How do you see STA’s advocacy efforts evolving under your leadership to ensure members’ perspectives are well represented in policy discussions?

STA’s advocacy efforts will continue to follow the same disciplined and effective approach that has defined our work for decades. First, we focus on identifying and engaging with congressional leaders and staff who are true thought leaders on issues affecting our industry – the individuals who are drafting legislation and shaping regulatory priorities. Establishing productive dialogue with them ensures that our members’ perspectives are understood early in the policymaking process.

Second, we work to build and maintain relationships with congressional members who serve on financial services committees and represent districts where STA has an Affiliate presence. This local connection is a powerful asset. It allows us to bring real-world perspectives from practitioners directly to policymakers and helps ensure that our advocacy remains grounded, credible, and representative of our national grassroots network.

You’ve been very involved with STAC’s scholarship initiatives. How do you envision STA expanding efforts to attract, educate, and support the next generation of finance and trading professionals?

Attracting and supporting the next generation of professionals is essential to the long-term health of any organization. Networking, education, and relationship-building have long been the pillars of career development, and STA’s 93-year history is rooted in providing exactly these types of opportunities across the financial services industry.

Our focus is on building a strong and welcoming community – one that brings people together through high-quality educational content and meaningful networking events. For STA, this work begins at the local level.

Our existing members and Affiliate networks play a vital role in inviting new professionals into the organization, introducing them to peers, and helping them form the connections that will support their growth throughout their careers.

Having led at both the local (STAC) and national levels, what do you think STA can do to strengthen collaboration between local affiliates and the national organization?

The affiliate structure is central to STA’s identity and defines us as a true grassroots organization. Strong affiliates – those that are well recognized in their local communities and on solid financial footing – are essential to the strength of the broader association.

At the national level, our first priority is ensuring that every affiliate has a meaningful and consistent point of contact with the STA Board. From there, we focus on establishing open and reliable lines of communication so we can identify needs early and provide timely support. That support includes helping affiliates promote their events on a national platform, offering content ideas and speaker resources for educational programs, and providing guidance on day-to-day operational challenges.

Strengthening these connections will ensure that both the national organization and our affiliates continue to grow together.

What do you see as the biggest opportunities and challenges facing market participants and how can STA help the trading community prepare for what’s next?

Two of the biggest challenges and opportunities facing the industry today are the increasing use of AI and the potential tokenization of Reg NMS securities.

AI is already demonstrating meaningful value across the financial markets, helping financial professionals at our member companies serve their clients faster and more efficiently. As these capabilities expand, the industry will need to balance innovation with responsible implementation and appropriate oversight. We believe it is vital to combine these great technological advances with the expertise of financial services professionals to serve clients.

Tokenization presents a different but equally significant frontier. Our industry has always been focused on innovation and on embracing technologies that benefit its clients. While much remains unknown about how tokenized securities will be structured or how they will trade in secondary markets, it is certainly an innovation that could have great potential as a form of asset ownership. There is clear momentum in Congress and among the major regulators – the SEC, CFTC, and Treasury – to develop a regulatory framework that would allow tokenized securities to evolve. Integrating tokenized assets into the existing market infrastructure will present challenges, but it will also create meaningful opportunities for firms that can adapt quickly and thoughtfully.

STA supports innovation in securities trading. A new framework for tokenization must adhere to the same regulatory principles that help to ensure the U.S. securities markets remain the envy of the world.

STA can help the trading community prepare by facilitating education, fostering dialogue between practitioners and policymakers, and ensuring that market participants have a forum to share insights as these technologies and regulatory frameworks continue to develop.