SIFMA issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on comments from SEC chair Gary Gensler on equity market structure reform:
“SIFMA has long called for a review of equity market structure, having previously presented recommendations designed to enhance the current structure to the SEC and Congress in 2013, 2014 and 2017. We have publicly supported certain ideas suggested by Chair Gensler, including decreasing access fees, implementation of the new round lot sizes and enhancements to the dissemination of odd-lot information as contemplated by the Commission’s 2020 Market Data Infrastructure Rule, and we see value in consideration of updates to SEC Rule 605, which Chair Gensler discussed as disclosure enhancements for all market participants including exchanges, market centers and brokers.
While our equity market structure is more fragmented today, it is also highly competitive and retail investors in particular enjoy the greatest access and lowest cost to investing that they have ever experienced. Changes that could impact those costs by eliminating low or zero-dollar commissions or limiting order execution venues should be reviewed closely and be subject to robust cost benefit analysis. Moreover, any changes to the rules governing the current equity market structure should be considered holistically with a view to ensuring there are no negative, unintended consequences for investors.”