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Nov 21, 2014

‘Flash Boys’ executive says U.S. regulators making progress

NEW YORK, Nov 21 (Reuters) – The trading executive at the
center of Michael Lewis’ book “Flash Boys” said U.S. regulators
have made progress in protecting investors against abusive
trading practices.

Brad Katsuyama, chief executive of IEX Group, has spent
years figuring out how high-speed traders collect a few cents on
every trade in the U.S. stock market, and is building a business
to protect longer-term investors from these traders, an effort
chronicled in “Flash Boys: A Wall Street Revolt” published in
March.

Nov 13, 2014

Exclusive: Virtu aiming for spring 2015 IPO – sources

NEW YORK (Reuters) – Electronic trading company Virtu Financial LLC hopes to go public in the spring, about a year after it originally planned its market debut, two sources familiar with the matter said on Thursday.

Virtu, a global market maker in equities, fixed income, currencies and commodities markets, is aiming for an initial public offering in April or May, said the sources, who both spoke on the condition of anonymity because the matter is not public.

Nov 13, 2014

Virtu aiming for spring 2015 IPO -sources

NEW YORK, Nov 13 (Reuters) – Electronic trading company
Virtu Financial LLC hopes to go public in the spring, about a
year after it originally planned its market debut, two sources
familiar with the matter said on Thursday.

Virtu, a global market maker in equities, fixed income,
currencies and commodities markets, is aiming for an initial
public offering in April or May, said the sources, who both
spoke on the condition of anonymity because the matter is not
public.

Nov 10, 2014

SEC chief says undertaking comprehensive U.S. stock market review

NEW YORK (Reuters) – Regulators are undertaking a comprehensive data-driven review of the rules underpinning the U.S. equity markets, including the pricing and rebate system used by exchanges, the head of the Securities and Exchange Commission said on Monday.

The SEC is looking at its National Market System rule set, as well as the role of exchanges acting as self-regulated organizations, to see if adjustments should be made to help reduce complexity, improve transparency and make the markets more robust, said SEC Chair Mary Jo White.

Nov 7, 2014

Exclusive – Wall Street firms seek bigger say in market issues: sources

NEW YORK (Reuters) – A major Wall Street trade group is lobbying to get legislation passed that would give trading firms, banks and institutional investors a greater say in how the U.S. stock market is governed, according to three people familiar with the plans.

The Securities Industry and Financial Markets Association (SIFMA) is making the case to lawmakers on Capitol Hill that the costs to implement and maintain market initiatives to its members, which include about 400 banks, brokers and asset managers, are significant, yet they have little input in crafting those rules. SIFMA has drafted the legislation and is looking for sympathetic ears, the people said.

Nov 7, 2014

Exclusive: Wall St. firms seek bigger say in market issues – sources

NEW YORK (Reuters) – A major Wall Street trade group is lobbying to get legislation passed that would give trading firms, banks and institutional investors a greater say in how the U.S. stock market is governed, according to three people familiar with the plans.

The Securities Industry and Financial Markets Association (SIFMA) is making the case to lawmakers on Capitol Hill that the costs to implement and maintain market initiatives to its members, which include about 400 banks, brokers and asset managers, are significant, yet they have little input in crafting those rules. SIFMA has drafted the legislation and is looking for sympathetic ears, the people said.

Nov 4, 2014

Exclusive: BATS to settle biggest-ever fine to an exchange – source

NEW YORK (Reuters) – BATS Global Markets is expected to settle a U.S. regulatory probe related to its dealings with high-frequency trading firms for $15 million, in what is likely to be the biggest fine ever handed out to an exchange operator, according to a source familiar with the situation.

The U.S. Securities and Exchange Commission has been investigating how Direct Edge, which merged with BATS in late January, may have selectively disclosed information about how firms can advantageously place orders on its market.

Nov 4, 2014

BATS appoints market veteran Concannon as new president

NEW YORK (Reuters) – BATS Global Markets, the No. 2 U.S. stock exchange operator by volume, said on Tuesday it appointed market veteran Chris Concannon as its president, effective Dec. 15.

Concannon, most recently president and chief operating officer of trading firm Virtu Financial, was among two leading candidates for the job, Reuters reported on Oct. 1.

Nov 3, 2014

IEX Group says to allow visible stock orders in late January

NEW YORK (Reuters) – IEX Group, which runs an alternative trading system known as a “dark pool,” said on Monday it plans to allow members to begin posting visible orders on its platform as of Jan. 31 as it prepares to become a full-fledged stock exchange.

Dark pools are broker-run electronic trading venues that allow investors to match buy and sell orders anonymously, making trading data available only after a trade happens in an attempt to prevent the others in the market from moving the price against them. Dark pools are more lightly regulated than exchanges, but cannot conduct initial public offerings and house listings, among other differences.

Oct 30, 2014

U.S. options exchanges say new rule threatens to hurt investors

NEW YORK (Reuters) – U.S. equity options exchange operators warned on Thursday that a new rule to be implemented on Jan. 1 aimed at making sure banks have adequate capital levels could significantly raise costs for many investors that trade options.

The rule, known as the Collins Amendment, is part of the 2010 Dodd-Frank Wall Street reform law. While aimed at making sure banks keep capital and credit risks in line, the rule would also apply to the options market-making arms of the banks, which would be required to measure credit risks more strictly than many do now. Market makers post buy and sell orders on exchanges so that securities are easier to trade, profiting from the spread between the bid and the offer.