The Managed Funds Association (MFA)’s recommendations would help improve critical market infrastructure, reduce operational risk, improve the overall quality of the US equity markets and strengthen investor confidence through greater disclosure and transparency.
MFA also urged regulators to consider conducting regular data-driven reviews of parameters for market volatility controls; to develop and implement contingency plans and interim processes with respect to clnosing auctions and other technical outages; and to enhance order handling and trading data transparency and accuracy so that investors are equipped to make more informed decisions.
“Reforms to equity markets should be data-driven, unbiased and systematic,” says Richard H Baker, MFA President and CEO. “Efficiently and effectively raising capital for businesses and providing risk-based returns for investors is the most basic function of financial markets. These recommendations will help reduce operational risk and strengthen investor confidences and safeguards – while building on the success of recent reforms undertaken by the SEC.”
MFA’s recent recommendations focus on the following areas:
• Market Data
• Closing Auctions and Contingency Plans
• Addressing Market Volatility
• Increasing Broker Routing Disclosures and Trading Venue Transparency
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