Wall Street Letter VOL. XLVI, NO. 7 - July 2014 | Page 8

NEWS

08

tiple equity trading venues that exist
solely for maker-taker rebates.
“There are two areas that we are
most concerned with; the first one
is the appearance of conflict, as it
undermines consumer confidence,
and second is the underlying cost
and complexity that we’ve heard a lot
about today when it comes to makertaker,” said Farley. “Maker-taker gets
to the heart many of issues we are
seeing and for those reasons we’ve
advocated removing maker-taker in
entirety in this country.”
Joe Ratterman, CEO of BATS
Exchange, noted there is a need to
reexamine SEC’s
Regulation NMS
and the makertaker model but
pointed out that
completely removing the latter withJOE RATTERMAN
out conducting
CEO of BATS
a pilot program
Exchange
could lead to
unintended consequences related to
commissions paid to brokers.
Ratterman is standing strong with
chairman Mary Jo White of the SEC,
noting that there has to be an organic re-examination of the market
structure in relation to Regulation
NMS.
“In the medium term, what I
believe is the best course of action is
to let SEC do the holistic review that
Chairman [Mary Jo] White articulated to industry. The review will be
comprehensive and will change
optimize and improve good attributes
for market.”
EXCHANGES & ATSs

BATS to offer CLP
program for ETPs
BATS Exchange plans to launch a
new competitive liquidity provider
program that specifically targets
exchange-traded product liquidity,
according to a June filing to the SEC.

The program, which would operate alongside BATS’ existing CLP
program, would launch as a pilot and
would be designed to encourage improved market quality for ETPs that
are eligible to become CLP program
securities, BATS told the SEC.
ETP issuers participating in the
program may be required to pay a fee
for participation in the program but
their issues would be expected to benefit from participants in the program
incentivized to aggressively quoted
the issues in exchange for a rebate.
An ETP participating in the
program must meet requirements set
out by BATS, including having a consolidated average daily volume of less
than one million shares for at least
one of the past three months. BATS
also noted the program will be open
to all ETPs in their first six months of
being exchange-listed.
The exchange said it would provide monthly reports to the regulator
to offer data on market quality
for the ETPs