Market Reform Recommendations

Promoting competition and transparency in the U.S. equity market

Today, MEMX sent a letter to the Securities and Exchange Commission (SEC) outlining a series of recommendations for sensible equity market structure changes in the following areas:

  1. Tick size reform
  2. Round lot reform
  3. Enhancements to Rule 605 disclosures
  4. Limit Order Display Rule enhancements
  5. Daily disclosure of ATS and Non-ATS volume information

The U.S. equity market is not broken. Nonetheless, there are improvements that can and should be made to make sure that regulation continues to keep pace with market evolution.

Our recommendations, which were devised with helpful feedback from our members, focus on two principles that are key to any robust financial market: competition and transparency. Broadly, these reforms are designed to improve market quality, enhance the ability for trading venues of all types to compete for order flow, and provide information that investors can use to make informed decisions about how to best participate in the market.

We hope that the SEC takes these recommendations seriously when considering potential reforms.