In the face of increasing competition, Europe's exchanges could do with a more efficient trading structure.
Matthew Lavicka, a managing director on Goldman's equities-trading desk and chairman of Sifma's trading and market structure committee, told the exchanges that he felt there was agreement among the majority of exchange customers: They couldn't safely be prepared for the NYSE contingency plan that involved routing orders away from the trading floor and to NYSE Arca in time for Monday morning.
But that will depend on future capital charges for cleared and uncleared assets and the precise structure of trading venues, which are still not known.
An advisory committee on regulatory issues has been asked by the SEC and CFTC to submit recommendations later this month on how to modernise market structure and trading rules.
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By November 2007, Mr. Taylor was an equity-derivatives trader on Goldman's Capital Structure Franchise Trading desk and had lost a "significant portion" of the trading profits he had accumulated earlier that year, according to criminal charging documents filed by prosecutors Wednesday.
As an example, both Morgan Stanley and Goldman Sachs are looking to spin off units of their proprietary trading business, and Goldman is changing its reporting structure to increase the transparency of its proprietary trading business.
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They are senior in the capital structure and are trading at a significant discount to parity.
They have a lot built into their structure that make them great trading tools for very short-term traders, but terrible investments for longer-term investors.
In reality, the markets (in part driven by privately held firms like Getco) have been evolving to a structure that caters to electronic trading, high frequency or otherwise.
Therefore, the market structure is evolving to promote new ways of trading and providing liquidity.
The issue becomes just the latest in a long list of issues the SEC is examining regarding the current U.S. market structure, right up there with high frequency trading, dark pools, flash trading, market access, and trade tracking and reporting.
The 1970s saw innovation in financial futures, the 1980s and 1990s in derivatives, and in the following decade innovation was around the structure and ownership of exchanges as they de-mutualized and went from pit trading to electronic trading, a move which brought more participants into the markets.
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The SuperTrust structure had share creation and redemption characteristics of an open-end fund and the trading flexibility of a stock.
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