Rethinking Regulatory Structure

112 Pages·2013·0.67 MB·English

by  Robert Schwartz (auth.)

Rethinking Regulatory Structure
Zicklin School of Business Financial
Markets Series
Robert A. Schwartz, Editor
Zicklin School of Business
Baruch College, CUNY
New York, NY, USA
Other Books in the Series:
Schwartz, Robert A., Byrne, John A., Colaninno, Antoinette (eds.):
Volatility
Schwartz, Robert A., Byrne, John A., Colaninno, Antoinette (eds.):
Technology and Regulation
Schwartz, Robert A., Byrne, John A., Colaninno, Antoinette (eds.):
Competition in a Consolidating Environment
Schwartz, Robert A., Byrne, John A., Colaninno, Antoinette (eds.):
The New NASDAQ Marketplace
Schwartz, Robert A., Byme, John A., Colaninno, Antoinette (eds.):
Electronic vs. Floor Based Trading
Schwartz, Robert A., Byrne, John A., Colaninno, Antoinette (eds.):
Coping with Institutional Order Flow
Schwartz, Robert A., Byrne, John A.. Colaninno, Antoinette (eds.):
A Trading Desk View of Market Quality
Schwartz, Robert A., Byrne, John A., Colaninno, Antoinette (eds.):
Call Auction Trading: New Answers to Old Questions
Schwartz, Robert A. (ed.):
Regulation of Equity Markets
For further volumes:
http://www.springer.com/series/7133
Robert A. Schwartz John Aidan Byrne
●
Gretchen Schnee
Editors
Rethinking Regulatory
Structure
Editors
Robert A. Schwartz John Aidan Byrne
Zicklin School of Business New York, NY
Baruch College, CUNY USA
New York, NY, USA
Gretchen Schnee
Zicklin School of Business
Baruch College, CUNY
New York, NY, USA
ISBN 978-1-4614-4372-8 ISBN 978-1-4614-4373-5 (eBook)
DOI 10.1007/978-1-4614-4373-5
Springer New York Heidelberg Dordrecht London
Library of Congress Control Number: 2012940872
© Springer Science+Business Media, LLC 2013
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In memory of Kalman J. Cohen,
my dear friend, colleague, and coauthor.

Contents
Chapter 1 Good Price Discovery, the Neglected
Regulatory Objective ...................................................................................... 1
Opening Remarks: Robert Schwartz
Speiser Professor of Finance, Zicklin School of Business,
Baruch College, CUNY
Chapter 2 The Case for Regulatory Reform ............................................. 7
Opening Address: Andreas Preuss
CEO, Eurex AG
Chapter 3 Regulation’s Impact on Competition ....................................... 17
Moderator: Benn Steil, Council on Foreign Relations
Steve Chmielewski, Jones Trading Institutional Services, LLC
Gregory DePetris, AQS, A Quadriserv Company
Joe Gawronski, Rosenblatt Securities Inc.
William O’Brien, Direct Edge
James Ross, NYSE Euronext
Chapter 4 Transparency in the Trading Markets ..................................... 33
Mid-Day Address: Alfred Berkeley
Chairman, Pipeline Trading Systems LLC
Chapter 5 The View from Europe .............................................................. 45
Moderator: Bruce Weber, London Business School
Robert Barnes, UBS Investment Bank
Eric Noll, NASDAQ OMX
Chris Pickles, BT Global Services
Peter Randall, Industry Commentator
Nic Stuchfi eld, SIX x-clear AG
vii
viii Contents
Chapter 6 View from the Regulators .......................................................... 59
Moderator: Robert Colby, Davis, Polk & Wardell LLP
James Brigagliano, U.S. Securities and Exchange Commission
Brian Peters, Federal Reserve Bank of New York
Susan Wolburgh Jenah, Investment Industry Regulatory
Organization of Canada
Chapter 7 Regulation Going Forward ....................................................... 75
Moderator: Harold Bradley, Ewing Marion Kauffman Foundation
Ian Domowitz, Investment Technology Group, Inc.
Gary Katz, International Securities Exchange
Tim Mahoney, Bids Trading
Jamie Selway, White Cap Trading LLC
Joseph Wald, Knight
Chapter 8 Regulatory Needs, Then and Now:
The Perspective of a Wall Street Veteran ...................................................... 95
Closing Dialog with Donald Weeden, Chairman, Weeden & Co. LP
List of Participants
James Angel Georgetown University
Robert Barnes UBS Investment Bank
Alfred Berkeley* Pipeline Trading Systems LLC
*At the time of the conference, Mr. Berkeley was Chairman of Pipeline Trading Systems LLC.
Steve Bookbinder* Deep Liquidity
*At the time of the conference, Mr. Bookbinder was with Deep Liquidity.
Harold Bradley Ewing Marion Kauffman
Foundation
Jay Biancamano* Liquidnet Holdings, Inc.
*At the time of the conference, Mr. Biancamano was with Liquidnet Holdings, Inc.
James Brigagliano US Securities and Exchange
Commission
Steve Chmielewski Jones Trading Institutional
Services, LLC
Robert Colby Davis, Polk & Wardell LLP
Gregory DePetris* AQS, A Quadriserv Company
*At the time of the conference, Mr. Petris was with AQS.
Ian Domowitz Investment Technology
Group, Inc.
Alfred Eskandar* Liquidnet Holdings, Inc.
*At the time of the conference, Mr. Eskandar was with Liquidnet Holdings, Inc.
Joe Gawronski Rosenblatt Securities Inc.
Gary Katz International Securities
Exchange
Tim Mahoney BIDS Trading
Eric Noll NASDAQ OMX
William O’Brien Direct Edge
Brian Peters* Federal Reserve Bank
of New York
*At the time of the conference, Mr. Peters was with the Federal Reserve Bank of New York.
ix
x List of Participants
Chris Pickles* BT Global Services
*At the time of the conference, Mr. Pickles was with BT Global Services.
Andreas Preuss Eurex AG
Peter Randall* Industry Commentator
*At the time of the conference, Mr. Randall was an Industry Commentator.
James Ross* NYSE Euronext
*At the time of the conference, Mr. Ross was with NYSE Euronext.
Stephen Sax FBN Securities Inc.
Robert Schwartz Zicklin School of Business,
Baruch College
Jamie Selway* White Cap Trading LLC
*At the time of the conference, Mr. Selway was with White Cap Trading LLC.
Benn Steil Council on Foreign Relations
Nic Stuch fi eld* SIX x-clear AG
*At the time of the conference, Mr. Stuch fi eld was with SIX x-clear AG.
Joseph Wald Knight
Bruce Weber* London Business School
*At the time of the conference, Professor Weber was with the London Business School
Donald Weeden* Weeden & Co. LP
*At the time of the conference, Mr. Weeden was with Weeden & Co. LP
Susan Wolburgh Jenah Investment Industry Regulatory
Organization of Canada