December Digest

As 2020 draws to a close, I want to provide a brief update on recent exchange activity and once again thank our members for their support during such a momentous time.  

Over the past few weeks, daily trading on MEMX has increased to over $2 billion of notional value in 5,900 securities.  

  • Hidden volume now regularly accounts for around 9% of volume, including significant midpoint activity in many actively traded stocks, like F and GE.   
  • Trading in Exchange Traded Products (ETPs) has expanded to 1.6% on-exchange market share. 
  • For the 20 most active ETPs trading on the exchange, we are continuously quoting at the best price 71% of the time.   

We expect member participation to continue to expand and retail activity to increase as firms take advantage of our new retail and sub-dollar pricing incentives in the new year. 

Market Data Infrastructure Order

Last week, the SEC made history with the unanimous adoption of the new rules designed to modernize key aspects of our national market system. 

I want to commend the Commission for their significant efforts to advance the quality of the equity market with the new market data infrastructure plan.  The adopted rules are thoughtful and incorporate feedback from many participants.   

Any change to a market as interconnected and complex as our US equity market is difficult. It takes commitment and hard work. It will be a long road to implementation of the new order, but we must start the journey to improvement at some point.   

At MEMX, we look forward to representing the member community as the Commission’s efforts to introduce more competition in the collection, consolidation and dissemination of market data come to fruition.  

Best wishes for a safe, healthy and happy New Year.