• Sep
  • 28
  • 2009
  • 6:11 AM

NYX CEO: We Need Smarter Financial Regulation, Not Over-Regulation.

By: Ray Pellecchia
File Under: NYSE Euronext

"In June, the Obama Administration proposed a new regulatory framework for financial markets that should have kicked off a vigorous debate over the future of financial regulation. Yet, until the President's recent Wall Street speech, the sense of urgency to pursue reform seemed to be abating. Now is the time to take action."

So says NYSE Euronext CEO Duncan Niederauer in an op-ed in the Wall Street Journal.

Among other things, Duncan calls for:

• Harmonizing the regulation of equities and derivatives at the SEC and CFTC;

• Appointing the Fed as the systemic risk regulator;

• Bringing certain standardized derivatives contracts into a transparent trading environment;

• Walking away from "over-regulation" ideas such as a stock-transaction tax.

Now would be a good time to unfreeze some of the positive reform proposals that have become stalled in Washington, D.C., Duncan says, concluding:

"We cannot claim that we have learned the lessons from last year's events until we have truly responded. We are at a critical juncture in the history of our financial markets. The crisis created a once-in-a-generation opportunity to modernize our outdated financial regulatory structure. We cannot let this opportunity pass."

Comments

Great Post Ray. Lets all pray that the people in charge see the wisdom of Mr. Niederauer's comments. Let the guys who actually are involved with day to day trading make the rules, not the people who have never traded a share of stock in their lives.

by tony dey on September 28, 2009 4:55 PM

Ray,

Maybe you can help me. I can not figure out what nsd prints are. When we trade nyse stocks we see nyy, nas, pse, prints and most of the time they affect the quote. All day long we see nsd prints at or away from the market that have zero effect on the quote. Do you know where the prints are coming from. oh, and they usually are at the exact price you are trying to get filled but dont. Very frustrating.
thanks,

Josh

by josh on September 30, 2009 11:18 AM

Josh -- We have our suspicions but we're not seeing those identifiers on the usual data systems; where are you seeing them -- an order-entry or order-management system?

by Ray Pellecchia on September 30, 2009 4:40 PM

i see the prints on my trading system, right were i see all the other prints. time and sales

by josh on October 1, 2009 8:19 AM

Josh, I see the same prints all day as well. Seems like they dont actually add any real value to the NYSE customers, just take advantage of the DMM's ability to make quality markets. Ray, maybe we can have someone on the exchange side take a look at this? either way, we appreciate all you guys do and we really need the NYSE to keep getting better & better for daily trading. Thanks again Ray, Hope all is well.

by tony dey on October 1, 2009 9:08 PM

I see these same prints as well... If we could get an answer as to what they are, and their significance, I'd appreciate it... Honestly, if those prints have no impact on the market, I'd rather not see them at all since they can be distracting...

by kmf on October 3, 2009 2:08 PM

wondering the same thing...??

jt

by jt on October 6, 2009 10:37 AM

and why when there is a bid for 1000 shares and it is about to get hit.... 1000 shares goes off at the same price on NSD and the bid is still there. often times NSD prints are shaved up or down with zero impact on bid/offer...can we please get an answer as to what they are?

by jt on October 9, 2009 10:59 AM

JT -- Our best guess is that "NSD" signifies the Finra/Nasdaq trade reporting facility. It's impossible for us to know for sure, as the various vendors use different identifiers, and I don't know who yours is or what identifiers they use. My only other thought is to put the question to the folks at your trading system.

by Ray pellecchia on October 9, 2009 5:50 PM

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