SEC
Market Data Advisory Committee to Meet December 14
October
27, 2000
The
next meeting of the SEC's Advisory Committee on Market Information has been scheduled
for Thursday, December 14 at 1:00 p.m. at SEC headquarters in Washington DC. FISD
was asked to participate on this Committee In September.
The
focus of the meeting will be on the fundamental question of whether the SEC should
focus on ways of improving the existing model for the dissemination of equity
market information or whether a completely new model is required.
The
initial meeting on October 10 focused on the core issues of transparency and consolidated
information. According to Chairman Dean Joel Seligman of the Washington School
of Law in St. Louis, the Committee reinforced its support for market data transparency
on a fair, reasonable, and nondiscriminatory basis. There were a variety of views,
however, on whether the current level of transparency is adequate, particularly
with the advent of decimalization and automation in the markets. One concept being
debated is the notion of a bimodal system, with a "mandatory minimum"
level of transparency, supplemented with additional information provided on a
voluntary competitive basis.
Seligman
reported that there was a wide range of views with respect to consolidation. The
discussion focused on ways to improve the current system of consolidating information
through a single centralized processor in accordance with the national market
system plans, as well as the benefits of opening up the consolidation function
to competition.
During
the initial meeting, the New York Stock Exchange reinforced its desire to withdraw
from the Consolidated Tape Association (CTA). Accordingly, NYSE (as well as any
other participant) was asked to submit a written proposal on their plan for achieving
the consolidation of market information. The proposal(s) will provide the foundation
for the discussion on December 14 and is expected to answer practical questions
related to:
(a)
who will act as consolidator(s);
(b) how the consolidators(s) will obtain
market information;
(c) how the consolidator(s) will make market information
available to users and how the terms, including fees, for information will be
determined;
(d) whether market information should be made available in
a standardized format and a description of the standard;
(e) why the alternative
model would be preferable to the existing model;
(f) how investors will
be assured of receiving accurate, real-time consolidated information under the
alternative model; and
(g) how brokers can satisfy their best execution
responsibilities using the alternative model.
Please
contact Mike Atkin at matkin@siia.net
with any questions or comments.
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