New York, Jun 9 (.) .- The president of the United States Securities Market Commission (SEC), Gary Gensler, said on Wednesday that the entity is studying changes in the operation of the stock market to adapt it to technological evolution.
“The question is whether our stock markets are as efficient as they could be, given recent technological changes and developments,” Gensler told the Piper Sandler Global Exchange and FinTech virtual conference, according to The Wall Street Journal.
Gensler, who took office in April, has previously questioned the system by which securities are exchanged, noting this time that part of the trading volume does not go through traditional exchanges, but through wholesale brokerage firms.
In this sense, the president of the SEC said that the authorities are reviewing the price incentives that exchanges and those brokerages use to attract money orders or requests, and stated that regulatory changes are being considered in the way in which those prices are set.
Gensler suggested that retail investors could get better prices by trading on exchanges, stating that nearly half (47%) were at wholesale brokerages and dark pools.
According to the newspaper, exchanges disclose their bids and offers, then compile those spins and publish the best data for each share, while wholesale brokerages and “dark pools” do not disclose their pre-exchange prices, which should be at least better than the ones in the bag.
Gensler cautioned that the national “best bid and offer” (NBBO) model could be a “poor parameter” because many trades take place off exchanges and even some spins are not compiled and collected on These data.
“I think there are signs … that the NBBO is not a complete enough representation of the market,” he added.
This Monday, Gensler also announced changes in the plans for the sale of shares of people who belong to a company, which are usually used to avoid allegations of “inside trading” or inside information.
These plans, called “10b5-1” and created by the SEC in 2000, have created “cracks” in the regime of control of privileged information, so the regulator seeks to “identify and punish the abuses” that occur , the president pointed out.
(c) . Agency