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Published by: Calibrated Confidence Blog on Jul 13, 2011
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 SECURITIES AND EXCHANGE COMMISSION17 CFR PART 242[Release No. 34-61358; File No. S7-02-10]RIN 3235-AK47Concept Release on Equity Market StructureAGENCY:
Securities and Exchange Commission.
Concept release; request for comments.
The Securities and Exchange Commission (“Commission”) is conducting a broadreview of the current equity market structure. The review includes an evaluation of equitymarket structure performance in recent years and an assessment of whether market structurerules have kept pace with, among other things, changes in trading technology and practices. Tohelp further its review, the Commission is publishing this concept release to invite publiccomment on a wide range of market structure issues, including high frequency trading, orderrouting, market data linkages, and undisplayed, or “dark,” liquidity. The Commission intends touse the public’s comments to help determine whether regulatory initiatives to improve thecurrent equity market structure are needed and, if so, the specific nature of such initiatives.
Comments should be received on or before
April 21, 2010.
Comments may be submitted by any of the following methods:Electronic Comments:
Use the Commission’s Internet comment form(http://www.sec.gov/rules/proposed.shtml
); or
Send an e-mail torule-comments@sec.gov. Please include File No. S7-02-10 on thesubject line; or
Use the Federal eRulemaking Portal (http://www.regulations.gov
). Follow theinstructions for submitting comments.Paper Comments:
Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities andExchange Commission, 100 F Street, NE, Washington, DC 20549-1090.All submissions should refer to File No. S7-02-10. This file number should be included on thesubject line if e-mail is used. To help us process and review your comments more efficiently,please use only one method. The Commission will post all comments on the Commission’sInternet Web site (http://www.sec.gov/rules/proposed.shtml
). Comments are also available forpublic inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE,Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m.All comments received will be posted without change; we do not edit personal identifyinginformation from submissions. You should submit only information that you wish to makeavailable publicly.
Arisa Tinaves, Special Counsel, at(202) 551-5676, Gary M. Rubin, Attorney, at (202) 551-5669, Division of Trading and Markets,Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-7010.2
Table of Contents
I. IntroductionII. Exchange Act Requirements for a National Market SystemIII. Overview of Current Market StructureA. Trading Centers1. Registered Exchanges2. ECNs3. Dark Pools4. Broker-Dealer InternalizationB. Linkages1. Consolidated Market Data2. Trade-Through Protection3. Broker Routing ServicesIV. Request for CommentsA. Market Structure Performance1. Long-Term Investorsa. Market Quality Metricsb. Fairness of Market Structure2. Other MeasuresB. High Frequency Trading1. Strategiesa. Passive Market Makingb. Arbitragec. Structurald. Directional2. Toolsa. Co-Locationb. Trading Center Data Feeds3. Systemic RisksC. Undisplayed Liquidity1. Order Execution Quality2. Public Price Discovery3. Fair Access and Regulation of ATSsD. General Request for Comments
I. Introduction
The secondary market for U.S.-listed equities has changed dramatically in recent years.In large part, the change reflects the culmination of a decades-long trend from a market structurewith primarily manual trading to a market structure with primarily automated trading. When3

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