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Themis Trading Calls For Moratorium On Approval Of All New US Equity Exchanges And Market Centers

Tyler Durden's picture




 

From Themis Trading

Themis Trading Calls for a Moratorium on the Approval of All New US Equity Exchanges and Market Centers

Themis Trading today called for a moratorium on the
approval all new US equity exchanges and market centers by US
regulatory authorities until the causes of the May 6, 2010 “flash crash”
have been determined. 

“Most industry professionals generally agree that something in our current market structure caused May 6th and unless we get to the bottom of it, May 6th
is more than likely to happen again,” said Themis co-founders Sal Arnuk
and Joseph Saluzzi.  “For 13 consecutive weeks the US equity market has
experienced massive fund outflows, and this coincides with the events
of May 6th Given that the events surrounding May 6th
are still being analyzed, and the cause of it remains elusive, does it
make sense for regulators to further increase the complexity of today’s
markets by approving new market centers?  Just in the most recent
months, we have witnessed the SEC approve several new exchanges, as well
as new venues entering the approval process.” 

“In our US equity market place alone, we have in excess
of 12 exchanges, as well as over 40 dark pools and ATS’s. These market
centers all operate by their own rules and have their own fee
schedules.  Given that the US equity market is more fragmented than
ever, which is a direct and unintended consequence of Reg NMS, we
question the wisdom of allowing even further fragmentation until our
regulatory bodies have a firm understanding of precisely what went wrong
on May 6th, as well as their having a firm understanding of
all the newer nuances of our modern market structure, including the
effects of various order types, co-location, and data feeds.” 

“We call on all financial industry participants, particularly its
leadership, to join in demanding our regulatory authorities institute a
moratorium, as it is crucial for trust and confidence to be restored
into the marketplace. While we acknowledge and applaud the thorough
undertaking by our regulators in soliciting information and data from
industry participants, in its attempt to understand our current market
structure, we also know it to be prudent to understand the complex web
that is our equity market today before we allow it to expand even
further.”

 

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Tue, 08/17/2010 - 14:30 | 526529 Cleanclog
Cleanclog's picture

"Also, we at Themis would like to stem additional competition for the time being."

Still, not an unreasonable suggestion.

Thu, 08/19/2010 - 11:47 | 530546 BlackBeard
BlackBeard's picture

They're not an exchange, nor do they make markets.

Tue, 08/17/2010 - 14:32 | 526534 youngandhealthy
youngandhealthy's picture

Amen...

HFT practices needs to be rooted.

Tue, 08/17/2010 - 14:53 | 526605 midtowng
midtowng's picture

But you know that this isn't going to happen until there is another May 6.

Tue, 08/17/2010 - 15:09 | 526655 slore
slore's picture

didn't happen the first time, what will differ next time? 

Tue, 08/17/2010 - 22:09 | 527465 David449420
David449420's picture

HFT practices need to be ABOLISHED.

Tue, 08/17/2010 - 14:35 | 526542 Jason T
Jason T's picture

Where do we sign up?

Tue, 08/17/2010 - 14:42 | 526564 Amsterdammer
Amsterdammer's picture

Moreover, one should wish good luck to G. Gensler

on the clearing houses. According to B.I.S, at year's end,

only 4% were publicly traded

 

Tue, 08/17/2010 - 16:03 | 526810 omi
omi's picture

Oh no, another participant from an industry group asking to limit competition because of <insert some nobel reason here>

 

 

Tue, 08/17/2010 - 19:24 | 527257 Bearster
Bearster's picture

Yup, it's capture the flag / "public interest" / regulators.

How long will each regulatory failure continue to result in calls for more regulation??

When will people eventually realize that regulation is the cause of, not the solution to, the problem?

Tue, 08/17/2010 - 22:08 | 527461 Hedge Jobs
Hedge Jobs's picture

yeah, cause too much regulation caused the GFC didnt it Bearster? get a grip Moron

Tue, 08/17/2010 - 22:24 | 527484 Number 156
Number 156's picture

Themis Trading today called for a moratorium on the approval all new US equity exchanges and market centers by US regulatory authorities until the causes of the May 6, 2010 “flash crash” have been determined.

I thought that it was already determined that it was a fat finger trade that initiated the flash crash. No?

I wouldn't sweat it. The markets are accelerating into a brick wall. There will be a 'sudden stop' where the government declares a banking holiday (to save our beloved banksters), followed up by fuel delivery stoppage, followed by food delivery stoppage, followed by torch and pitchfork parades. 

Then, you will have your 'Moratorium' in all its spectacular glory.

Wed, 08/18/2010 - 00:03 | 527583 CPL
CPL's picture

I get the feeling that those two poor men are going to "disappear" by accident for stating the obvious on record.

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