SEC Officials Provide Update On Equity Market Structure Modernization

SEC Chair Jay Clayton and the SEC Division of Trading and Markets Director Brett Redfearn reviewed agency efforts to improve equity market structure and the rules governing the National Market System (the "NMS").

Equity Market Structure Modernization

At an SEC-sponsored virtual forum, Mr. Clayton and Mr. Redfearn described the current state of equity market structure modernization and highlighted certain progress.

On issues concerning thinly traded securities, Mr. Clayton criticized the "one-sized-fits-all" approach for exchange-listed stocks. Mr. Redfearn highlighted proposals (i) to provide incentives for heightened obligations taken on by market makers, (ii) to conduct periodic intraday auctions as a method for concentrating liquidity, and (iii) to implement non-automated markets to promote participation.