SEC Commissioner Piwowar Discusses Equity Market Structure
SEC Commissioner Michael Piwowar spoke at the University of Notre Dame Mendoza College of Business. He discussed the current status of equity market structure.
Commissioner Piwowar expressed disappointment that the SEC accomplished "very little" regarding improvements to equity market structure. He noted, however, that he is pleased with the progress of the tick size pilot program for small capitalization companies, which would test the benefits and costs of an alternative minimum price increment for small-cap stocks. He also voiced approval of the SEC's finalization of the composition of the Market Structure Advisory Committee. He stressed that the Committee must remember its authority to act as an independent source of recommendations, and not act as a "sounding board" for ideas generated within the SEC.
He stated that outside the SEC, many members of the securities industry are taking "proactive steps" regarding equity market structure. He commended Nasdaq's effort for designing and conducting a pilot program for access fees. He pointed out that initiatives undertaken by private entities such as Nasdaq are more efficient than the SEC's programs, and that these initiatives can supplement the programs initiated by the SEC.
Commissioner Piwowar also emphasized the "vital role" that academics play in informing the SEC's policymaking through research, and encouraged academics to submit research directly to the SEC or submit comment letters to administrative agencies. He noted that academics are "perfectly situated" to make data-driven observations through empirical evidence and analysis to influence and impact the SEC's policies.