STA - 2010 - A New Decade Begins

Written by: John Giesea

31 December 2009

The Officers and Governors of the Security Traders Association extend our wish for each of our members and friends of STA to enjoy a happy, healthy and prosperous New Year.

As STA enters its 77th year, we stand ready to accept the challenges that lay in wait for us. We have spent many years “investing” in an ever stronger presence in Washington and, today, enjoy a solid footprint in the Nation’s capital. We will enlarge the footprint in 2010!

In 2009 we have witnessed a trend that causes us concern. This concern centers on the rapid growth of political and emotional pressures that have been unleashed in market structure debate. Often overlooked is the very strong performance of equity and option markets during this period. The SEC built Reg NMS to “modernize and strengthen” our markets – it worked. The STA, in 2003, remarked that market structure is “evolutionary” by nature and recent issues in this area represent no more than a healthy part of this evolution.

We support the SEC as the appropriate body to oversee and insure that our market structure remains the world’s best. Today’s markets are extraordinarily complex and great care is required to prevent unintended market degradation owing to these external pressures. Proposed rules must emanate from empirical evidence, cost/benefit analysis and be subjected to full due process.

The facts suggest that investors, today, enjoy greater liquidity, transparency and substantially lower execution costs. Issues concerning transfer taxes, short sales, IOI’s, flash orders, dark liquidity, latency and access are representative of the evolving nature of our markets. Competition has driven our markets to “world class” and remains the most efficient tool in achieving the objectives of all investors. STA maintains that a proper balance between regulation and competition represents the optimum course.

STA conducted its 8th Annual Strategy Meeting in November and has targeted priority areas for 2010 focus. We desire to build on our successes of the past, shore up the “opportunities” and to create added value to our members, while attracting representation from all trading models. Consistent with our goal of continually improving communication of STA positions with regulators and legislators, we have enhanced our internal policy on due process. In addition, some 16 initiatives have been identified and undertaken for work in 2010.

Our 2010 Chairman, Brett Mock, is fully energized and our Board has a full compliment totaling 17 professionals. The Board recently approved Peggy Bowie, MFC Global Investment Management, John Russell, Franklin Templeton Investments, and Jim Smyth, EVP, Knight Equity Markets, as 2010 members. Our Organization will benefit from a strong board of senior professionals, representing multiple business models and who are committed to improving our markets and in representing STA member’s interests in Washington.

Lastly, we want to share that plans are underway for STA’s 77th Annual Conference, September 22-25, 2010, in Washington D.C. This location represents a significant shift from our previous 76! We will take full advantage of our venue to provide a unique and powerful conference. Be sure to mark your new calendars!

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