SEC Eyeing Rulemaking To Combat Market Volatility, Modernize Market Structure

On January 26, 2022, SEC Chairman Gary Gensler issued a brief statement noting the agency's efforts to address the market volatility in January 2021 and beyond. The statement referenced the SEC staff report on volatility and market structure conditions and a request for comment related to digital engagement practices or "DEPs," which we previously addressed here and here. Most notably, the Chairman remarked that he looked forward to the staff's recommendations to address the conclusions noted in the report. The reference to "conclusions" is puzzling, given that the report amounted to little more than a secondhand retelling of events and a beginner's guide to equity and option market structure basics.