WASHINGTON (Reuters) - U.S. securities regulators have tapped a list of well-known stock market experts to serve on a new advisory panel tasked with helping shape rules affecting high-speed traders and dark pools.
Experts tapped for the Securities and Exchange Commission’s panel include BATS Global Markets CEO Joe Ratterman, Convergex CEO Eric Noll, formerly of Nasdaq, and Joe Mecane, a market structure expert who last year departed the New York Stock Exchange and now works as a managing director for Barclays PLC.
The SEC said the 17-member panel will “provide a formal mechanism” for the agency to receive advice on a number of areas.
Most notably, it will study the impact of the SEC’s Regulation National Market System. Many say that rule, known as Reg NMS, helped give rise to high-frequency trading because it fostered so much competition by requiring investors to get the best price.
That in turn helped lead to a fragmented market, where stocks are traded across a variety of exchanges and “dark pool” platforms, and brokers race to get trades executed at the best price in the shortest amount of time.
Also tapped for the panel was Brad Katsuyama, head of IEX Group, the platform featured in Michael Lewis’ book “Flash Boys: A Wall Street Revolt.” Others include former Delaware Senator Ted Kaufman, MIT professor Andrew Lo and Financial Industry Regulatory Authority CEO Richard Ketchum.
The SEC said the panel will meet four times a year and will have a two-year term.
”Additional expertise from a diversity of backgrounds and viewpoints will be invaluable to us in ensuring that our markets continue to operate openly, fairly and efficiently to benefit investors and promote capital formation,” said SEC Chair Mary Jo White in a statement.
Reporting by Sarah N. Lynch; Editing by David Gregorio