Monday, June 29, 2015
Thursday, June 4, 2015
Seems like a good plan to me.
The article has a creative solution to the equity market structure problem of fragmentation: only allow stocks to trade on one exchange but have multiple exchanges compete for listings. The authors propose:As opposed to now, when we have companies all under essentially identical exchanges due to, I think, the consolidation of regulation under FINRA, and the exchanges compete to get the most volume.
“The remedy is to create multiple trading venues and then limit trading in a particular security to one of them. There could be 10 licensed stock exchanges, and they could split among them the approximately 8,000 companies whose shares trade publicly in the U.S.”