Conflicts of Interest, Investor Loss of Confidence, and High Speed Trading in U.S. Stock Markets

Jay OwenReforming Global Finance, SRI/ESG News


Watch Brad Katsuyama, featured in Michael Lewis’ bestseller Flash Boys, discuss issues affecting the US equity markets, particularly conflicts of interest in pricing structure, market design and technology architecture, such as high-frequency trading.

 

Presented before the Permanent Subcommittee on Investigations

June 17, 2014 09:30AM, Room 216, Hart Senate Office Building

 

Member Statements

  •  SENATOR CARL LEVIN D (MI)

Download Statement (47.6 KB)

  •  SENATOR JOHN McCAIN R (AZ)

Download Statement (34.9 KB)

 

Agenda

The Permanent Subcommittee on Investigations has scheduled a hearing, “Conflicts of Interest, Investor Loss of Confidence, and High Speed Trading in U.S. Stock Markets,” on Tuesday, June 17, 2014, at 9:30 a.m., in Room 216 of the Hart Senate Office Building.

The Subcommittee hearing will examine conflicts of interest in the U.S. stock markets and the impact of such conflicts on consumer confidence, including in the context of high frequency trading. In particular, the hearing will focus on the conflicts of interest that arise between the obligation of brokers to provide their customers with best execution of their orders to buy or sell securities, and the brokers’ receipt of payments from other brokers for order flow and rebates from some trading venues for placing those orders directly. Witnesses will include representatives of stock exchanges, brokerage firms, and institutional investors, as well as a securities market expert. A witness list will be available Friday, June 13, 2014.

 

Witnesses

PANEL ONE

  • BRADLEY KATSUYAMA

President & CEO

IEX Group, Inc.

New York, NY

Download Testimony (398.7 KB)

  • ROBERT H. BATTALIO

Professor of Finance, Mendoza College of Business

University of Notre Dame

Notre Dame, IN

Download Testimony (260.4 KB)

PANEL TWO

  • THOMAS W. FARLEY

President

NYSE Group

New York, NY

Download Testimony (69.6 KB)

  • JOSEPH P. RATTERMAN

Chief Executive Officer

BATS Global Markets, Inc.

Lenexa, KS

Download Testimony (83.4 KB)

  • JOSEPH P. BRENNAN

Principal and Head of Global Equity Index Group

The Vanguard Group, Inc.

Malvern, PA

Download Testimony (47.8 KB)

  • STEVEN QUIRK

Senior Vice President, Trader Group

TD Ameritrade

Omaha, NE

Download Testimony (74.3 KB)

 

Watch the hearings: VIDEO