Articles

STANY is the voice of the trading community in the Great New York City area. STANY represents individuals, engaged in the buying, selling and trading of securities. STANY does not represent a single business or business model, but rather provides a forum for trading professionals from institutions, broker-dealers, ECNs, ATSs and systems providers to share their unique perspectives on issues facing the securities markets. Our members work together to promote their shared interest in efficient, liquid markets, as well as their concern for investor protection. We believe that strong and efficient markets require an appropriate balance between effective regulation and innovation and competition.

Stories of interest highlighted are do not necessarily reflect the opinions of the STANY Board or the membership. We hope that you will find the articles chosen to be of interest and the links to the left to be a quick resource to other news stories and market information. 

SEC Investor Advisory Committee - October 15, 2015 Meeting Notes

Williams & Jensen Oct 15, 2015 Report

On October 15, the Securities and Exchange Commission (SEC) convened a meeting of the Investor Advisory Committee (Advisory Committee, or IAC) to discuss: (1) Recent Market Structure Developments; (2) ETF pricing; (3) FASB Materiality Proposal Update; and (4) SEC Enforcement Priorities. The Advisory Committee will hold its next meeting on January 21, 2016.

Below, please find a summary of statements of SEC Chair Mary Jo White. More information is included in the attached report by Alex Barcham, Rebecca Konst, and Lucas Rogers.

SEC Chair Mary Jo White gave a statement in which she pointed to progress on a number of SEC rulemakings, including: finalizing the pay ratio disclosure rule; finalize rules removing credit rating references and to amend the issuer diversification requirements in money market funds; and the final rules for registration of security-based swap dealers. She noted that the SEC also proposed a rule to modernize reporting by investment companies, proposed rules to promote liquidity risk management in open-end funds, sought comment on disclosure requirements, and issued a concept release on audit committee disclosures. She pointed to the volatility in the market on August 24, noting that the SEC is examining exchange traded products (ETPs). She said limit-up/limit-down (LULD) triggered trading pauses and noted that the some ETPs traded at sharp discounts to their net asset values (NAVs). She explained that the SEC has been and continues to be interested in two issues: the operation of the limit-up/limit-down, and the quality of exchange traded-product secondary market pricing. She stated that LULD is operating on a pilot basis. She said the self-regulatory organizations (SROs) and the SEC are examining LULD and how it operated on August 24, suggesting that this was similar to a stress test. She said the SEC will look at whether any amendments are needed before LULD is finalized on a permanent basis. White said SEC recently requested comment on listing and trading of ETPs, including ETP characteristics which may affect the alignment of ETP market prices with the values of their underlying assets. She said SEC staff is continuing to evaluate trading data from August 24, including how ETP behavior can be explained by uncertainty of underlying assets pricing, the liquidity demand and supply of ETPs, and low trading volume in individual ETPs.