The SEC recently announced that it has formed an Equity Market Structure Advisory Committee in order to “provide a formal mechanism through which the Commission can receive advice and recommendations specifically related to equity market structure issues.” The committee is expected to meet quarterly and address issues such as “the review of SEC Regulation NMS (national market system), the role of exchanges in the current market structure, and the presence and effect of conflicts in the routing and execution of equity orders.” The committee is composed of 17 members, each set to serve a two-year term. The members are:
- Matthew Andresen, Co-Chief Executive Officer, Headlands Technologies LLC
- Reginald Browne, Senior Managing Director & Global Co-Head, ETF Group, Cantor Fitzgerald & Co.
- Kevin Cronin, Global Head of Trading, Invesco Ltd.
- Brad Katsuyama, President and CEO, IEX Group Inc.
- Ted Kaufman, Professor, Duke University Law School and former U.S. Senator from Delaware
- Richard Ketchum, Chairman and CEO, FINRA
- Manisha Kimmel, Managing Director, Financial Information Forum
- Mehmet Kinak, Vice President and Head of Global Equity Market Structure and Electronic Trading, T.Rowe Price Group
- Andrew Lo, Charles E. and Susan T. Harris Professor of Finance and Director, Laboratory for Financial Engineering, MIT Sloan School of Management and Chairman and Chief Investment Strategist, AlphaSimplex Group
- Joseph Mecane, Managing Director, Barclays PLC
- Jamil Nazarali, Senior Managing Director & Head of Execution Services, Citadel Securities
- Eric Noll, President & CEO, Convergex Group
- Maureen O’Hara, Robert W. Purcell Professor of Finance, Johnson Graduate School of Management, Cornell University and Chairman of the Board, Investment Technology Group Inc.
- Joe Ratterman, CEO, BATS Global Markets Inc.
- Nancy Smith, Corporate Secretary & Chief Integration Officer, AARP
- Chester Spatt, Kenneth B. and Pamela R. Dunn Professor of Finance, Tepper School of Business, Carnegie Mellon University and Director of its Center for Financial Markets
- Gary Stone, Chief Strategy Officer, Bloomberg Tradebook LLC
According to a recent Bloomberg article, the composition of the committee was the source of controversy among the SEC’s commissioners. Commissioners Daniel Gallagher (against) and Luis Aguilar (for) reportedly disagreed on the inclusion of Joseph Stiglitz, a Nobel Prize-winning economist, who was ultimately not named as a member of the group. The article posits that the reason for the disagreement may have been Stiglitz’s anti-high-frequency trading views. In addition, Commissioner Michael Piwowar reportedly opposed the appointment of Roger Ferguson, current TIAA-CREF CEO and former Federal Reserve vice chairman, who also did not make the list.