The SEC has taken several steps in the past two years to overhaul the Securities Information Processor (SIP), which disseminates NMS market data to investors. The overhaul of the SIP is actually broken down into three separate rule-making procedures at the SEC: a governance order, an infrastructure rule and a fee change rule. Here are highlights from a recent Security Traders Association (STA) Open Call: STA President and CEO Jim Toes interviewed Adrian Griffiths, Head of Market Structure for MEMX, which has called for immediate round lot reform.
In 2020, the SEC published highly anticipated updates to its Infrastructure Rule, which will alter processes for the collection, consolidation and dissemination of market data for exchange-listed NMS securities. A large segment of market participants are in favor of round lot reform – a key element of the updates – and believe it can and should be implemented much sooner than the Commission’s intended date while still meeting the rule’s requirements.
On a recent Security Traders Association (STA) Open Call, Adrian Griffiths, Head of Market Structure at MEMX, offered insight on round lot reform, including what it would mean for investors and the industry at large if it were to be expedited and how this could realistically be achieved. MEMX recently released a whitepaper calling for immediate round lot reform – a key element of the Commission’s Infrastructure Rule.
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