Integrity of Market Regulation
We have a great divergence of fascinating views on this panel and, I must add, from a variety of organizations in the financial services sector. As you know, the SEC published a Concept Release which is a part of the agency’s review of the existing structure of securities markets. In tandem with this initiative, the SEC raised this question: Is market regulation keeping pace with changes in technology and trading practices? High-frequency trading (HFT) is one of the areas it specifically singled out. The SEC asked for comments on whether high-frequency trading is a problem. And the agency, having identified some problems, asked if a new set of regulatory initiatives is required.