| 00:00:32 |
none, -
IN THIS AREA. HOLDING A HEARING ON MARKET STRUCTURE, AND SECURITIES AND INVESTMENT. THESE HEARINGS ARE INTENDED TO COMPLIMENT THE SUB COMMITTEE'S WORK....
|
| 00:04:17 |
Unidentified Speaker, -
EXCHANGES, ELECTRONIC STOCK MARKETS, BROKERED DEALERS, INTERNALIZE TRADE AND ALTERNATIVE
|
| 00:04:24 |
Unidentified Speaker, -
DISPLAY FACILITIES. IN MANY CASES, COMPANY STOCK CAN BE TRADED IN ANY OF SEVERAL COMPETING MARKETPLACES. A MODERN COMPUTER TECHNOLOGY HAS CHANGED TRADING...
|
| 00:07:26 |
Unidentified Speaker, -
MARKET SYSTEM FOR SECURITIES. I WELCOME YOUR
|
| 00:07:31 |
Unidentified Speaker, -
INPUT. THE NATIONAL MARKET SYSTEM ENCOMPASSES EQUITIES OF MORE THAN 5,000 COMPANIES
|
| 00:07:37 |
Unidentified Speaker, -
WHICH COLLECTIVELY REPRESENT MORE THAN $15 TRILLION IN MARKET
|
| 00:07:41 |
Unidentified Speaker, -
CAPITALIZATION. THE COMMISSION IS COMMITTED TO ASSURING THAT INVESTORS HAVE THE FAIREST AND MOST EFFICIENT MARKETS POSSIBLE FOR INVESTING IN THE SECURITIES....
|
| 00:16:58 |
Unidentified Speaker, -
WHAT YOU MEAN BY THE TRADE THROUGH RULE? >> YEAH. WELL, AGAIN, THE TRADE
|
| 00:17:06 |
Unidentified Speaker, -
THROUGH RULE IS A RULE DESIGNED TO COUNTER THE EFFECTS OF A PROLIFERATION OF MARKETS SO THAT THE BEST
|
| 00:17:21 |
Unidentified Speaker, -
PRICE IS AVAILABLE. WHEN THE BEST PRICE IS AVAILABLE THE ORDERS ARE EXECUTED AGAINST THAT BEST PRICE. >> GIVE US AN EXAMPLE OF HOW THIS MIGHT WORK...
|
| 00:17:49 |
Unidentified Speaker, -
NATIONAL BEST BID OR OFFER -- THE TRADE
|
| 00:17:55 |
Unidentified Speaker, -
THROUGH RULE ALLOWS OR FORCES THAT THE -- THE MARKET -- THE EXECUTION OF THAT ORDER TO BE DONE AT THE BEST BID AND DOES NOT ALLOW THE SO-CALLED TRADING...
|
| 00:20:49 |
Unidentified Speaker, -
MECHANISMS THE ABILITY
|
| 00:20:52 |
Unidentified Speaker, -
TO
|
| 00:20:54 |
Unidentified Speaker, -
TRADE AT ELECTRIC SPEEDS, IF YOU WILL. THE TRADITIONAL FLOOR
|
| 00:21:02 |
Unidentified Speaker, -
BASED AUCTION MARKETS HAVE A DELAY IN TERMS OF EXECUTING AN ORDER SO THAT THEY MAY DISPLAY A BID THAT IS THE BEST BID BUT THE ELECTRONIC MARKET CANNOT...
|
| 00:23:45 |
Unidentified Speaker, -
WITH A BIG UNDERLINE ON INTEGRITY. IN OTHER WORDS, IF
|
| 00:23:52 |
Unidentified Speaker, -
THE MARKETS ARE EFFICIENT BUT
|
| 00:23:55 |
Unidentified Speaker, -
LACK INTEGRITY -- >> OH, I AGREE. I SAID INTEGRITY FIRST. >> I DEFINE INTEGRITY AS BEING THE -- NOT PUSHING ASIDE
|
| 00:24:06 |
Unidentified Speaker, -
THE BEST BID OR OFFER. INTEGRITY AND HERE AGAIN I GET BACK TO WHAT -- >> NOT TRADING FOR YOURSELF AHEAD OF YOUR CUSTOMERS, TOO, HUH? >>
|
| 00:24:17 |
Unidentified Speaker, -
WELL, I BELIEVE THAT WE HAVE TO HAVE A MARKET
|
| 00:24:21 |
Unidentified Speaker, -
PLACE THAT IS -- HAS INTEGRITY FOR BOTH INSTITUTIONAL AND INDIVIDUAL INVESTORS. >> ABSOLUTELY. >> AND WHAT WE'RE, YOU KNOW, I'LL LEAP NOW AHEAD
|
| 00:24:34 |
Unidentified Speaker, -
A LITTLE BIT AND MAYBE I SHOULDN'T BUT I WILL, IF YOU'LL LET ME. >>
|
| 00:24:38 |
Unidentified Speaker, -
FINE. GO AHEAD. >> TO THE THEORY HERE THAT IF A
|
| 00:24:49 |
Unidentified Speaker, -
QUOTE IS ELECTRONIC AND IS
|
| 00:24:52 |
Unidentified Speaker, -
ACCESSIBLE AND IS UNTOUCHED BY HUMAN HANDS, THEN ONE WOULD QUESTION
|
| 00:24:58 |
Unidentified Speaker, -
WHY YOU WOULD NEED TO HAVE AN OPT-OUT RULE. IN OTHER WORDS, WHY SHOULD YOU HAVE TO OPT OUT OF THAT SORT OF A
|
| 00:25:08 |
Unidentified Speaker, -
SYSTEM? THE SECOND PART OF THIS IT IS THAT IF IN FACT YOU HAVE A QUOTE THAT IS NOT ELECTRONIC, AND IT'S SO DESIGNATED, THEN IT BECOMES A SLOW MARKET...
|
| 00:26:03 |
Unidentified Speaker, -
TALKING ABOUT IS A BIFURCATED KIND OF APPROACH WHERE YOU HAVE THE ACCESS TO THE
|
| 00:26:12 |
Unidentified Speaker, -
ELECTRONIC SPEEDS AND SO FORTH BUT AT THE SAME TIME, AT THE CUSTOMER'S DISCRETION, THEY CAN MOVE THEIR ORDER INTO, QUOTE, A SLOW MARKET AND GET SOME...
|
| 00:27:02 |
Unidentified Speaker, -
ARE -- HAVE SUGGESTED THAT THE TRADE THROUGH RULE BE EXTENDED TO THE OVER-THE-COUNTER NASDAQ MARKET. >> SO IT WOULD HAVE AN IMPACT ON THEIR, WHAT THEY...
|
| 00:27:23 |
Unidentified Speaker, -
ELECTRONIC AND TRADE THROUGH AND AS I DESCRIBED IT THE EX--- BE EXTENDED TO THE OVER-THE-COUNTER MARKET. >> SENATOR SARBANES, THANK YOU FOR YOUR INDULGENCE....
|
| 00:27:34 |
Unidentified Speaker, -
MUCH, MR. CHAIRMAN. FIRST OF ALL, CHAIRMAN
|
| 00:27:38 |
Unidentified Speaker, -
DONALDSON, I'VE BEEN STRUCK BY HOW OPEN AND COMPREHENSIVE YOUR EXAMINATION OF THIS ISSUE HAS BEEN. AS I INDICATED AT THE OUTSET, IT IS QUITE A COMPLEX...
|
| 00:27:51 |
Unidentified Speaker, -
AND ROUND TABLES AS I
|
| 00:27:54 |
Unidentified Speaker, -
UNDERSTAND IT AS A CONSEQUENCE OF SOME OF THE HEARINGS. YOU DID A SUPPLEMENTAL REQUEST FOR COMMENT, WHICH WENT OUT AND YOU -- >> RIGHT. >> HAVE YOU...
|
| 00:28:24 |
Unidentified Speaker, -
PROCESS. MY PERCEPTION IS THAT
|
| 00:28:26 |
Unidentified Speaker, -
THERE IS NOT A PROBLEM IN THAT REGARD BUT HAVE YOU GOTTEN ANY COMPLAINTS? >> YEAH. I THINK THIS HAS BEEN THE MOST INCREDIBLY COMPLETE PROCESS. IT IS...
|
| 00:28:50 |
Unidentified Speaker, -
HAS BEEN AN INCREDIBLE OUTREACH ON THE PART OF THE S.E.C. THERE BEANS I THINK, GREAT PARTICIPATION BY THE INDUSTRY AND PANELS AND OPEN DISCUSSIONS AND...
|
| 00:29:41 |
Unidentified Speaker, -
MANNER. WHAT IS YOUR VIEW OF WHAT A TIMELY MANNER ENCOMPASSES. >> I KNEW YOU WERE GOING TO ASK THAT QUESTION. WELL, WE HAVE, AS I SAY, WE HAVE 600 COMMENT...
|
| 00:30:10 |
Unidentified Speaker, -
THAT. I BELIEVE THAT WE SHOULD BE IN A POSITION TO BOIL THIS DOWN AND COME UP WITH SOME SORT OF REFINED, PROPOSED RULES, YOU KNOW, BEFORE THE END OF...
|
| 00:31:24 |
Unidentified Speaker, -
ALREADY BEEN SOME CONSOLIDATION AS YOU KNOW IN THESE MARKETS AND PARTICULARLY THE ELECTRONIC MARKETS. AS THERE IS THIS TRADE-OFF BETWEEN THE DIVERSITY...
|
| 00:31:49 |
Unidentified Speaker, -
OF MARKETPLACES, FRACTIONALIZATION IS THE BUZZ WORD. FRACTIONALIZATION OF THE MARKETS. AND BASICALLY, THE PURE THEORY OF THE BEST MARKET IN ECONOMIC TERMS...
|
| 00:33:39 |
Unidentified Speaker, -
PROMPTED THIS -- THE NEW YORK STOCK EXCHANGE AND THE S.E.C. TO TAKE THESE UNFORTUNATE ACTIONS. WOULD THAT BE CORRECT? >> WELL, THE -- YOU'RE ASKING...
|
| 00:34:25 |
Unidentified Speaker, -
POSSIBLE IN AN ELECTRONIC MARKETPLACE? >> DIFFERENT KINDS OF ABUSES, YES. >> I MEAN, BUT OF THE ONES THAT WE ENCOUNTERED HERE? >> YEAH. I MEAN, THERE...
|
| 00:34:45 |
Unidentified Speaker, -
LET'S SAY, THAT PREVAIL, AND I DON'T MEAN TO DAMN THEM ALL, BUT THERE IS A SERIES OF
|
| 00:34:50 |
Unidentified Speaker, -
PRACTICES THAT
|
| 00:34:52 |
Unidentified Speaker, -
PREVAIL THAT GIVE MONETARY
|
| 00:34:57 |
Unidentified Speaker, -
INCENTIVES IF YOU WILL TO BRINGING ORDERS TO AN ELECTRONIC MARKET. THE UGLY WORD IS THE REBATE BUT IN ESSENCE TO ATTEMPT TO GET AN INDUCE BUYERS AND...
|
| 00:35:49 |
Unidentified Speaker, -
EXECUTING ORDERS FOR THEIR DEALER ACCOUNTS AHEAD OF EXECUTEABLE PUBLIC CUSTOMER AGENCY ORDERS, AND THEREFORE VIOLATING THE BASIC OBLIGATION, EXECUTEABLE...
|
| 00:37:00 |
Unidentified Speaker, -
ALL OF THE THINGS THAT I REFERRED TO BEFORE IN TERMS OF CHANGES BROUGHT ABOUT NEW TRADING STRATEGIES AND SO FORTH, AND THE REDUCTION OF SPREADS TO...
|
| 00:37:54 |
Unidentified Speaker, -
ARGUMENT IS MADE OR THAT WE GET BETTER PRICE AND ALSO THAT YOU ARE ABLE TO EASE THE VOLATILITY ISSUES. NOW IS THAT ARGUMENT BEING UNDERCUT OR WEAKENED...
|
| 00:38:40 |
Unidentified Speaker, -
MARKET OR SPECIALIST MARKET OR WHATEVER NAME YOU WANT TO PUT ON IT, I THINK THAT OUR CENTRAL MARKET WOULD LOSE A GREAT DEAL. IN OTHER WORDS, IF --...
|
| 00:41:01 |
Unidentified Speaker, -
COMMENDATION. IT IS OPEN AND
|
| 00:41:03 |
Unidentified Speaker, -
I THINK IT IS VERY AWARE IF YOU WILL IF A PROCESS CAN BE AWARE THAT THESE ARE VERY, VERY DIFFICULT ISSUES THAN IF YOU MAKE THE WRONG TURN YOU COULD...
|
| 00:43:12 |
Unidentified Speaker, -
NEVER HEARD
|
| 00:43:13 |
Unidentified Speaker, -
OF COMING TO THE HOUSE AND HE WOULD PORE OVER THEM. >> I THOUGHT YOU READ THEM ALL. >> NO. >> THE AMOUNT OF TIME HE PUT IN -- >> ARE YOU TRYING TO...
|
| 00:43:37 |
Unidentified Speaker, -
HE WANTS BEST
|
| 00:43:38 |
Unidentified Speaker, -
PRICE. THE SMALL INVESTOR, I ASKED
|
| 00:43:39 |
Unidentified Speaker, -
HIM THE OTHER DAY. HE'S 81,
|
| 00:43:41 |
Unidentified Speaker, -
STILL DOING THIS. STILL
|
| 00:43:44 |
Unidentified Speaker, -
SPENDS TIME TO MY MOTHER'S SHAH GRIN AT THE DESK LOOKING -- TO MY MOTHER'S CHAGRIN LOOKING AT THESE REPORTS AND THINGS. HE DOESN'T CARE IF IT TAKES...
|
| 00:49:42 |
Unidentified Speaker, -
MORE PARTICIPATION BY INDIVIDUAL INVESTORS THAN MANY OTHER MARKETS -- ANY OTHER MARKET IN THE WORLD. IT IS INTERESTING TO ME TO SEE HOW MANY INSTITUTIONAL...
|
| 00:52:43 |
Unidentified Speaker, -
INSTANTANEOUS CAPABILITY CAN BE DEVELOPED BY THE
|
| 00:52:45 |
Unidentified Speaker, -
SO CALLED SOFTWARE MARKETS WHAT DO HAVE YOU TO OPT OUT FOR? >> EXACTLY. >> IT IS TOTALLY COMPETITIVE WITH THE ELECTRONIC MARKET. >> THANK YOU, MR....
|
| 00:53:09 |
Unidentified Speaker, -
THING THAT I THINK THERE IS
|
| 00:53:11 |
Unidentified Speaker, -
A HOW YOU DO IT MANUAL
|
| 00:53:14 |
Unidentified Speaker, -
OR OBVIOUS
|
| 00:53:16 |
Unidentified Speaker, -
PERFECT SOLUTION. AND SO I COMPLIMENT THE COMMISSION AND THE CHAIRMAN FOR THE THOUGHTFULNESS AND THE DEDICATION TO FULLY EXPLORING ALL OF THOSE ELEMENTS...
|
| 00:54:34 |
Unidentified Speaker, -
OTHER HAND, I THINK THERE ARE NEW PROGRAMS BEING WRITTEN WHERE BIDS AND OFFERS CAN BE BLASTED TO THE BEST MARKET ELECTRONICALLY. THE INDUSTRY CAN SOLVE...
|
| 00:55:39 |
Unidentified Speaker, -
HOOKED INTO THE SAME BOX, THEY ALL HAVE TO COME IN, YOU HAVE TO HOM O.J. NIES $HOMOGONIZE HOW THEY COME INTO THAT BOX BUT I ASSUME IF YOU GET ALL THOSE...
|
| 00:56:24 |
Unidentified Speaker, -
DO IT I THINK A QUOTE WAS BEFORE WE GET -- FASTER THAN WE CAN PASS A RULE. I THINK WE'RE SEEING MOVEMENT NOW IN THE PLACE OF -- >> I COMPLIMENT THOSE...
|
| 00:56:58 |
Unidentified Speaker, -
SECOND 900 SHARES EXECUTED YOU GET A LOUSY PRICE FOR THE BALANCE OF THOSE. YOU MAY NOT HAVE GOTTEN IN TOTAL THE BEST PRICE IN HOW THIS HAPPENS. ...
|
| 00:57:55 |
Unidentified Speaker, -
SHARES. IT SHOWS FOR ME IS THE AVERAGE PRICE I GET ON EXECUTING A HUGE ORDER AND THEREFORE I'VE GOT TO GO DOWN UNTIL I GET MY WHOLE ORDER AND THAT NEXT...
|
| 00:58:36 |
Unidentified Speaker, -
ONE 100-SHARE ORDER THAT HAD THE COURAGE TO POST IT, POST A LIMIT ORDER, DOESN'T GET EXECUTED. AND LET'S SAY
|
| 00:58:44 |
Unidentified Speaker, -
SENATOR SCHUMER'S FATHER THERE WHO POSTED THAT ORDER AND ALL OF A SUDDEN THE TRANSACTIONS TAKE PLACE AND HE HAD THE BEST BID AND HE DOESN'T GET IT....
|
| 00:59:15 |
Unidentified Speaker, -
OPERATING OUTSIDE OF THE ELECTRONIC, AUTOMATIC CAPABILITY. I THINK WE HAVE THE SEEDS OF ALLOWING PEOPLE TO GO INTO
|
| 00:59:24 |
Unidentified Speaker, -
THAT MARKET, INTO THE SLOW MARKET AND GET THE BENEFITS OF IT. >> BUT IF I UNDERSTAND THIS RIGHT THE OPT-OUT RULE IS DESIGNED SO THAT POTENTIALLY SENATOR...
|
| 00:59:48 |
Unidentified Speaker, -
THE DANGERS OF OPT-OUT ARE THAT AT LEAST FOUR PEOPLE GET HURT. THEY GET HURT, THE PEOPLE WHO HAD THE BEST BID AND OFFER AND THE TRANSACTIONS NOT
|
| 01:00:06 |
Unidentified Speaker, -
DONE, IT'S OPTED OUT AND NOT DONE AT THAT PRICE, YOU'RE LEAVING A BEST BID ON THE BOOKS OF A PLACE LIKE THE NEW YORK STOCK EXCHANGE. THAT PERSON IS...
|
| 01:01:25 |
Unidentified Speaker, -
THE MARKET. THEY PICK A PRICE THAT THEY THINK THEY CAN EXECUTE THE OVERALL TRANSACTION BACK THROUGH THOSE EXCHANGES. THE OPT-OUT RULE DOES HAVE A LOT...
|
| 01:03:01 |
Unidentified Speaker, -
ELECTRONICALLY. THE ORDER DELIVERY SYSTEMS IN MANY OF THE BROKERAGE FIRMS ARE SUCH THAT THEY CAN BLAST MULTIPLE ORDERS OUT ELECTRONICALLY AND I THINK...
|
| 01:03:39 |
Unidentified Speaker, -
TELL ME, I KNOW WE'VE GOT TO VOTE AND THE TIME IS RUNNING, THEY'RE HOLDING IT FOR US, BUT THE BEST PRICE AND EXECUTION IN CONFLICT,
|
| 01:03:47 |
Unidentified Speaker, -
GIVE US AN EXAMPLE. >> WELL I GO BACK TO THE THOUSAND SHARES. THE BEST PRICE EXECUTION FOR A THOUSAND SHARES MIGHT NOT REFLECT THAT -- >> OK. >>...
|
| 01:04:01 |
Unidentified Speaker, -
OPT-OUT. >> OK. >> SO IT STRIKES ME THAT THERE IS ANOTHER ALGORHYTHM ONE WANTS TO LOOK FOR THAT TAKES IN
|
| 01:04:10 |
Unidentified Speaker, -
CHUCK'S FATHER BUT GETS AT THE DEPTH ANYWAY.
|
| 01:04:17 |
Unidentified Speaker, -
ANYWAY,
|
| 01:04:18 |
Unidentified Speaker, -
GOOD LUCK. >> MR. CHAIRMAN THANK YOU FOR YOUR APPEARANCE. WE'VE GOT TO VOTE. OUR TIME HAS RUN.
|
| 01:04:22 |
Unidentified Speaker, -
WE THANK YOU. WE'RE
|
| 01:04:23 |
Unidentified Speaker, -
GOING TO RECESS FOR A FEW MINUTES AND LET US GO VOTE AND WE'LL GO BACK ON THE SECOND PANEL. THANK YOU A LOT. >> GLAD TO BE HERE. THANK YOU. >> THE MEETING...
|
| 01:04:39 |
Unidentified Speaker, -
|
| 01:04:48 |
Unidentified Speaker, -
|
| 01:04:52 |
Unidentified Speaker, -
ST MEETING WILL COME BACK TO ORDER. THE SECOND PANEL WILL TAKE YOUR SEATS. MOST OF YOU KNOW THIS, IS THE WAY THE SENATE OPERATES. WE -- WE -- WE'RE SLOW...
|
| 01:05:35 |
Unidentified Speaker, -
HERE ALL AFTERNOON. ALL OF YOU WRITTEN TESTIMONIES WILL BE MADE A PART OF THE RECORD IN ITS ENTIRTY. WE HAVE A LOT OF THINGS GOING ON IN THE SENATE AS...
|
| 01:06:51 |
Unidentified Speaker, -
THE REST OF THE DEVELOPED WORLD HAS TRANSITIONED TO THE ELECTRONIC MODEL. THE NEW YORK STOCK EXCHANGE IS THE ONLY MARKET THAT RELIES ON THE FOOT...
|
| 01:15:37 |
Unidentified Speaker, -
AND MID CAPPED COMPANIES. THESE COMPANIES ARE HEADQUARTERS ACROSS THE UNITED STATES, AND ARE DIVERSE NOT ONLY IN THE LINE OF BUSINESS BUT ALSO
|
| 01:15:44 |
Unidentified Speaker, -
HOW ACTIVELY THE SECURITIES TRADE. FOR EXAMPLE, ON SOME OF OUR LISTED STOCKS TRADE ACTIVELY IN THE MILLIONS OF SHARES A DAY T STOCK OF MANY OTHER AMEX...
|
| 01:24:40 |
Unidentified Speaker, -
DAY. MY LIMIT ORDER GOES IN. AND LO AND BEHOLD, PINNACLE BANK SHARES CAME UP AT $17. I'M
|
| 01:24:47 |
Unidentified Speaker, -
NOT REALLY PAYING ATTENTION. I -- I THEORETICALLY, AT A GIVEN MOMENT, I AM THE BEST PRICE TO BUY PINNACLE BANK SHARES BECAUSE I'M THE LOWEST PRICED SELLER....
|
| 01:26:34 |
Unidentified Speaker, -
LOWER THE OVERALL TRADING COST. NOW, WHAT I WOULD LIKE TO DO IS -- IF IT'S OK WITH THE COMMITTEE IS SUBMIT MY ORIGINAL TESTIMONY TO YOU IN WRITING. ...
|
| 01:27:07 |
Unidentified Speaker, -
THE NASDAQ MARKETPLACE. ALL OF THESE
|
| 01:27:09 |
Unidentified Speaker, -
PARADE OF HORRIBLES DO NOT OCCUR IN THE NASDAQ MARKETPLACE. LET'S TALK ABOUT RETAIL INVESTORS. THAT -- THE MAJORITY OF RETAIL ORDERS TODAY ARE...
|
| 01:32:15 |
Unidentified Speaker, -
IS A POTENTIAL PROBLEM IN THE ENLISTED WORLD -- IN THE OVER-THE-COUNTER TRADING WORLD, THERE'S THREE OF US TODAY THAT COMPETE HEAD TO HEAD. WE HAVE...
|
| 01:33:56 |
Unidentified Speaker, -
INJECT THEMSELVES IN FRONT OF THE
|
| 01:34:00 |
Unidentified Speaker, -
TRADE, PUT A PIECE OF IT IN THEIR OWN POCKET BECAUSE IT'S A GREAT TRADE AT THAT MOMENT IN TIME, AND THEN PROFIT FROM IT AS THE STOCK CONTINUES TO TRADE....
|
| 01:36:51 |
Unidentified Speaker, -
LEAVES THE COMPETITORS
|
| 01:36:52 |
Unidentified Speaker, -
FREE IN THE LISTED WORLD TO TRADE AT HIGHER PRICES AND SKIP THE OTHER 33,000 SHARES, UP SIX CENTS. OUR PROPOSAL WOULD BE TO TAKE THIS CONCEPT OF FIRM...
|
| 01:39:26 |
Unidentified Speaker, -
EMPHASIZING PROTENTHING THE PUBLIC GOOD AND PRESERVING THE
|
| 01:39:29 |
Unidentified Speaker, -
COMPETITIVE STRENGTH OF OUR CAPITAL MARKETS. OUR GOAL SHOULD NOT BE A MARKET OVER THE ORE, BUT WE SHOULD FIND A WAY FOR COMPETITION AMONG MARKETS TO...
|
| 01:47:40 |
Unidentified Speaker, -
OF LOWEST COSTS OF TRADING IMPACT. >> I'D SAY THAT -- >> WHAT'S THE STRONGEST ATTRIBUTE? >> WE PROTECT LIMIT ORDERS
|
| 01:47:50 |
Unidentified Speaker, -
WITHIN OUR SYSTEM. SO ALL LIMIT ORDERS THAT SIT IN OUR SYSTEM ARE AVAILABLE AND ACCESSIBLE IMMEDIATELY, ELECTRONICALLY, WITHOUT ANY HUMAN INTERVENTION....
|
| 01:48:05 |
Unidentified Speaker, -
WHEN YOU SEE IT. YOU KNOW WHAT YOU'RE GOING TO
|
| 01:48:07 |
Unidentified Speaker, -
GET WHEN YOU SHOW UP. BECAUSE THERE'S
|
| 01:48:09 |
Unidentified Speaker, -
A -- A -- A COMPUTER PROGRAM THAT EXECUTES AN ORDER THE SAME WAY EVERY SINGLE TIME. IT'S THAT CERTAINTY AND SPEED AT WHICH
|
| 01:48:20 |
Unidentified Speaker, -
WE -- WE RESPOND TO THE OTHER
|
| 01:48:22 |
Unidentified Speaker, -
CUSTOMERS' ORDERS. >> SIMILAR? >> YES, I SAY TRANSPARENCY, FAIRNESS IN THE ELECTRONIC MARKET WHERE -- WHICH EVERYBODY CAN SEE, HAVE ACCESS TO. EVERYBODY...
|
| 01:48:44 |
Unidentified Speaker, -
FLOOR HAVE AN ADVANTAGE OVER THOSE WHO ARE
|
| 01:48:47 |
Unidentified Speaker, -
UPSTAIRS. >> THE MARKET CATERS TO SMALL AND MID CAP COMPANIES. I WOULD SAY DISCOVERY AND REDUCTION OF VOLATILITY. >> DEFINITELY CHOICE AND COMPETITION...
|
| 01:49:09 |
Unidentified Speaker, -
THERE'S A SMALL CROWD OF TRADERS GATHERED AROUND THE SITE -- THIS IS ON THE FLOOR OF THE NEW YORK STOCK EXCHANGE -- WHEN YOU SEE FLOOR BROKERS THAT'S...
|
| 01:49:17 |
Unidentified Speaker, -
OF INSTITUTIONAL INTERESTS. THE FLOOR OF THE NEW YORK STOCK EXCHANGE. THE BASIC FABRIC OF THAT EXCHANGE WAS BUILT FOR THE LARGE PERSON, THE LARGE INSTITUTIONAL...
|
| 01:49:55 |
Unidentified Speaker, -
IN THE LAST SIX, SEVEN. >>
|
| 01:49:58 |
Unidentified Speaker, -
HOW WILL THE S.E.C.'S
|
| 01:50:00 |
Unidentified Speaker, -
PROPOSED AMENDMENTS TO THE TRADE
|
| 01:50:03 |
Unidentified Speaker, -
THROUGH IMPACT YOUR COMPANIES
|
| 01:50:05 |
Unidentified Speaker, -
THAT ARE NATIONAL SECURITY? HOW WILL THEY OPT OUT IN
|
| 01:50:10 |
Unidentified Speaker, -
FAST MARKET EXCEPTIONS
|
| 01:50:12 |
Unidentified Speaker, -
OPERATE IN THE MARKETS? >> THIS IS ABOUT INTRODUCING EFFICIENCY IN THE TRADING OF THE STOCKS IT LISTS.
|
| 01:50:19 |
Unidentified Speaker, -
IT'S MY PERSONAL OPINION THAT 80% OF MARKETS SHARING ANY MARKET, WHETHER IT'S SODA -- TRADING STOCKS, IT'S NOT HELPING. AND WE CERTAINLY BELIEVE THAT...
|
| 01:50:35 |
Unidentified Speaker, -
EPSIS IN THE CAPITAL RAISING PROCESS. AND WE NEED TO MAKE SURE THAT THIS PROCESS IS AS EFFICIENT AS POSSIBLE AND ALLOWING MORE INVESTORS TO HAVE A...
|
| 01:51:31 |
Unidentified Speaker, -
WE'RE GOING HAVE A TRADE-THROUGH RULE APPLY TO NASDAQ, WE NEED TO OPT OUT. >> I THINK WITH REGARDS TO THE TRADE-THROUGH RULE AND THE NYSE'S PROPOSAL,...
|
| 01:51:59 |
Unidentified Speaker, -
THE NEW YORK STOCK EXCHANGE SAYS IS IT ABOUT PROTECTING CUSTOMER LIMIT ORDERS, DO THEY INTEND TO PROTECT THE LIMIT ORDERS
|
| 01:52:06 |
Unidentified Speaker, -
AT THE NEXT BEST PRICE AND THE
|
| 01:52:08 |
Unidentified Speaker, -
NEXT BEST PRICE? THIS PLAN DOESN'T CALL FOR THAT. A LOT OF PASSION BUT THIS PLAN DOESN'T TAKE CARE OF THAT. ONE OTHER ASPECT OF IT THAT WE HAVE AN...
|
| 01:53:09 |
Unidentified Speaker, -
THE MARKET IS
|
| 01:53:10 |
Unidentified Speaker, -
CHARGED TO THE DATA, HOW ARE THESE FEES CALCULATED? >> WE BELIEVE THAT THE PROPOSAL WITH RESPECT TO THE MARKET DATA MISSES THE MARK. THE ISSUE IS...
|
| 01:53:23 |
Unidentified Speaker, -
IT'S A QUESTION OF HOW YOU DETERMINE THE PULL THAT GETS SHARED. THIS POOL WAS ESTABLISHED BY NASDAQ 20 YEARS AGO IN THE TRADING PRICE FOR THAT POOL IS...
|
| 01:53:37 |
Unidentified Speaker, -
WE SHOULD MINIMIZE THE DATA THAT'S SUBJECT TO THIS SHARING POOL. IT SHOULD BE DATA THAT'S CLEARLY IN THE COMMON GOOD. THAT DATA WOULD BASICALLY BE...
|
| 01:54:33 |
Unidentified Speaker, -
RULE SAYS IS IF YOU TRADE THROUGH A BETTER BID OR BETTER OFFER, YOU MUST SATISFACTORY THE PERSON WHO YOU TRADE -- SATISFY THE PERSON YOU TRADED THROUGH....
|
| 01:54:46 |
Unidentified Speaker, -
THAT YOU HAVE TO MAKE THEM GOOD AT THE PRACTICES THEY WERE WILLING TO BUY OR TO SELL. AND SO THERE ARE TRADE-THROUGHS THAT OCCUR PRIMARILY BECAUSE THE...
|
| 01:55:04 |
Unidentified Speaker, -
GOOD ON
|
| 01:55:05 |
Unidentified Speaker, -
ANY LEGITIMATE TRADE-THROUGHS. >> MR. PUTNAM, YOU HAVE A COMMENT? >> YES. THE THOUSAND-PLUS WE COMPLAIN ABOUT A DAY ARE ONES THAT HAVE NOT BEEN SATISFIED...
|
| 01:55:28 |
Unidentified Speaker, -
EIGHT SECONDS
|
| 01:55:29 |
Unidentified Speaker, -
AFTER IT WAS TRADED THROUGH. AND THEN ONE THOSE TWO CONDITIONS ARE SET AND IT IS A GOOD AM OF TIME, EVEN THOUGH SYSTEMS CAN BE SLOW, THAT'S A GOOD...
|
| 01:56:39 |
Unidentified Speaker, -
FOR EXAMINING THIS ISSUE? OR DOES ANYONE
|
| 01:56:41 |
Unidentified Speaker, -
FEEL THAT THEY HAVEN'T DONE WHAT THEY SHOULD HAVE DONE IN TERM OF GATHERING INFORMATION AND GIVING PEOPLE AN OPPORTUNITY TO BE HEARD? >> IF I COULD HEAR...
|
| 01:57:14 |
Unidentified Speaker, -
THE -- THE NEW YORK STOCK
|
| 01:57:17 |
Unidentified Speaker, -
EXCHANGE, TAKE IT, THE FIRST LINE OF
|
| 01:57:20 |
Unidentified Speaker, -
DEFENSE IN DEALING WITH THE PRACTICES OF THE SPECIALIST
|
| 01:57:25 |
Unidentified Speaker, -
FIRMS. AM I CORRECT IN THAT REGARD? >>
|
| 01:57:27 |
Unidentified Speaker, -
YES. >> THEN THE
|
| 01:57:28 |
Unidentified Speaker, -
|
| 01:57:30 |
Unidentified Speaker, -
S.E.C., AS IT -- IS THERE A BACKUP TO THAT OR OVERSEAR TO THAT? HOW YOU WOULD DESCRIBE THAT RELATIONSHIP? >> YES. THE S.E.C. HAS OVERSIGHT OF THE...
|
| 01:57:47 |
Unidentified Speaker, -
THIS MARCH SETTLEMENT OF S.E.C.
|
| 01:57:51 |
Unidentified Speaker, -
ENFORCEMENT ACTIONS FOR ABOUT A QUARTER OF A BILLION DOLLARS TO PREVENT
|
| 01:57:56 |
Unidentified Speaker, -
FUTURE ABUSES AND TO ENHANCE THE ABILITY OF ITS REGULATORY
|
| 01:58:02 |
Unidentified Speaker, -
FUNCTION OF PREVENT MISCONDUCT? >> THANK YOU. THERE HAVE BEEN QUITE A NUMBER OF CHANGES IN THE NEW YORK STOCK EXCHANGE. REALLY OVER THE LAST YEAR. AS...
|
| 01:58:25 |
Unidentified Speaker, -
FUNCTIONS HAVE BEEN SEPARATED FROM THE BUSINESS FUNCTIONS OF THE EXCHANGE. SO I AS THE C.E.O. OF THE NEW YORK STOCK EXCHANGE RUN THE BUSINESS SIDE....
|
| 01:59:33 |
Unidentified Speaker, -
OF THE REGULATORY SIDE AND THE REPLACEMENT OF THOSE INDIVIDUALS RESPONSIBLE FOR THE ENFORCEMENT PART OF THE EXCHANGES REGULATORY SIDE, WE HAVE ALSO...
|
| 01:59:51 |
Unidentified Speaker, -
THE SPECIALIST. AND SO THE MOST EGREGIOUS FORM OF THE BEHAVIOR OF THE SPECIALIST, COMPUTER SYSTEMS NO LONGER WOULD ALLOW TO HAPPEN. AND WE ARE SPENDING...
|
| 02:00:46 |
Unidentified Speaker, -
ACTIVITIES? WHETHER THEY PUT PERSONAL INTERESTS AHEAD OF INVESTOR INTERESTS. WHAT DO YOU MAKE OF THAT ARGUMENT? >> WELL, I THINK MR. THEME WAS...
|
| 02:01:15 |
Unidentified Speaker, -
NOT ON THOSE ITEMS. OUR DIFFERENCE IS HOW TO GET THERE. WE FUNDAMENTALLY BELIEVE AN OPT-OUT REPRESENTS MARKET FORCES THAT ALLOW COMPETITORS TO COME...
|
| 02:02:17 |
Unidentified Speaker, -
COMPETITOR'S
|
| 02:02:18 |
Unidentified Speaker, -
SYSTEMS BEYOND THE M.B.O.? WILL YOU PROTECT FIRM ORDERS THROUGH DEPTH OF BOOK UNDER THAT PLAN? AT A COMPETITOR'S MARKETPLACE. >> AS MR. PUTNAM KNOWS...
|
| 02:02:52 |
Unidentified Speaker, -
WE CLEARLY HAVE BEEN CONSISTENT IN OUR POSITION, WE BELIEVE IN COMPETITION, COMPETITION HAS HAD A VERY -- HAS BEEN VERY DIFFICULT FOR
|
| 02:03:11 |
Unidentified Speaker, -
INSTANET. THEY SAW IT GO FROM $3 FOR EVERY 1,000 SHARES IT TRADES TO UNDER 40 CENTS TODAY. THE BIGGEST BENEFICIARIES OF COMPETITION ARE ALWAYS THE...
|
| 02:06:56 |
Unidentified Speaker, -
AN INTEREST HEARING. I'M SORRY IT WAS DELAYED AND HAD TO GO INTO THE EARLY AFTERNOON. WE LEARNED SOMETHING FROM THE HEARING. THANK YOU. THE MEETING...
|
| 02:07:12 |
Unidentified Speaker, -
|
| 02:07:13 |
Unidentified Speaker, -
|
| 02:07:14 |
Unidentified Speaker, -
Nnnnn //////////
|
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.