NEW YORK, NY — 08/05/12 — Speaking at the 2012 Security Traders Association (STA) Wisconsin Convention this weekend, Jim Toes, president and CEO of the STA, urged regulators to limit the number of rule changes market participants are asked to absorb in short periods of time to better allow the industry to handle necessary software upgrades to accommodate the changes.
“If anything good can come out of the unfortunate events that impacted Knight Capital and the markets last week, I hope it is that regulators will slow the pace of change we are all being asked to absorb,” Toes said. “Our markets were not built overnight. Rule changes that impact order entry and execution — no matter how well intended — require time for participants to study, test and execute.”
In recent testimony before the U.S. House of Representatives’ Capital Markets and Government Sponsored Enterprises Subcommittee of the Committee on Financial Services, Toes told committee members that rules governing the securities markets are introduced to the marketplace by SEC initiatives in the form of rule proposals, or the rule filings of the Self-Regulatory Organizations submitted to the SEC for approval.
“Very simply, there have been too many changes, in too short a time,” Toes said. “The process itself for how new rules are introduced needs to be reviewed.”
Toes added that restoring investor confidence is paramount.
“Everything we do… from introducing new rules to the quality of our executions… should be judged against restoring investor confidence,” he said.
CEO’s STA Wisconsin Speech (click here to review)
About the Security Traders Association (STA)
Founded in 1934, STA is a leading trade organization for individuals in the securities industry. The STA is committed to promoting the interests of its members in the legislative, regulatory and technological processes, while fostering goodwill and high standards of integrity in accord with its founding principle, Dictum Meum Pactum – “My word is my bond.”