ASA Statement on SEC Market Structure Proposals

New reforms should recognize different tiers of market structure and make the market more hospitable to smaller public companies

WASHINGTON, D.C. – Today, the American Securities Association (ASA) released a statement regarding the equity market structure proposals the U.S. Securities and Exchange Commission (SEC) issued during the agency’s open meeting.

“ASA welcomes the SEC’s focus on equity market structure, and we look forward to reviewing these proposals to understand their impact on investors, capital formation, and competition,” ASA CEO Chris Iacovella said. “ASA is particularly focused on the auction process’ impact on order execution and competition, increasing disclosure around payment for order flow, and ending the monopoly practices of large exchanges that drive up costs for investors. We also hope these new reforms recognize there are different tiers of market structure and the need to make the market more hospitable to smaller public companies.”

Last year, ASA sent a letter to the SEC outlining areas of market structure reforms including exchange pricing tiers and promoting competition. And in March, ASA sent a letter commending the House Financial Services Committee for prioritizing market structure-related bills. ###