With the SEC initiating a 12-month pilot program designed to determine whether trading the stocks of small companies in wider “tick sizes” would improve market quality and benefit investors, Modern Markets Initiative CEO Bill Harts recently offered up some perspective on the issue during an interview with Markets Media.
“Based on what we’ve seen so far, we absolutely are backing Chairman White and we think that a well-regulated market is an efficient market and it’s good for all investors,” Harts told Markets Media.
The SEC’s plans to examine market structure will also be helpful in educating market participants about the many benefits investments in technology, including high frequency trading, have brought to today’s financial markets. As explained by Harts:
“There has been a lot of misunderstanding about high-frequency trading, and the most pressing issue is to educate people as to the real benefits so that we don’t accidentally undo all the progress that’s been made over the last ten to fifteen years. Efficient markets help everyone from large institutions that are trying to trade to individual retail investors that are saving for retirement.”
Read Harts’ entire interview on MarketsMedia.com here.
For more background on tick sizes, read a previous commentary from the MMI here.