Technology And Regulation

This book is an augmented account of Technology and Regulation: How Are They Driving Our Markets?, a conference hosted by the Zicklin School of Business at Baruch College on May 1, 2007. Two primary drivers have transformed the equity markets in recent years: technological advances and regulatory initiatives. How does modern, electronic technology facilitate trading, and to what extent does it present new challenges? How does regulation adjust to the changing structure of the markets, and to what extent is it itself a source of change? What are the new problems and solutions for handling institutional orders? On both sides of the Atlantic, what are the overall impacts of technology and regulation on market quality? The conference resulting in this volume brought together buyside and sellside practitioners, regulators, and academicians to address these and related issues. The Zicklin School of Business Financial Markets Series presents the insights emerging from a sequence of conferences hosted by the Zicklin School at Baruch College for industry professionals, regulators, and scholars. Much more than historical documents, the transcripts from the conferences are edited for clarity, perspective and context; material and comments from subsequent interviews with the panelists and speakers are integrated for a complete thematic presentation. Each book is focused on a well delineated topic, but all deliver broader insights into the quality and efficiency of the U.S. equity markets and the dynamic forces changing them. This book is an augmented account of Technology and Regulation: How Are They Driving Our Markets?, a conference hosted by the Zicklin School of Business at Baruch College on May 1, 2007. The text includes the edited transcript of the full conference: four panels and the major presentations of three distinguished industry leaders – Ian Domowitz, Managing Director, ITG, Inc.; Erik Sirri, Director of the Division of Market Regulation, US Securities and Exchange Commission; and John Thain, who was CEO of NYSE Euronext at the time of the conference. The book also includes a related paper by Paul Davis, Mike Pagano, and myself: “Divergent Expectations,” Journal of Portfolio Management, Fall 2007. My co-editors and I have worked diligently to make this book, like all the other popular books in the series, more than an historical record. John Byrne, Antoinette Colaninno and I have edited the manuscript heavily for clarity and unity of ideas.