NEW YORK, Oct 20 (Reuters) - The New York Stock Exchange, Nasdaq and brokerage Charles Schwab Corp have criticized a committee the U.S. Securities and Exchange Commission formed to advise on the equity market’s structure.
In a joint letter sent to the SEC on Tuesday, the three said the body lacks representatives from a wide swath of market participants, including from non-financial public companies, individual investors, exchanges or retail broker-dealers.
President Thomas Farley of NYSE, a unit of Intercontinental Exchange Inc, Nasdaq executive vice president Tom Wittman and Schwab senior vice president Jeffrey Brown, who signed the letter, asked the commission to rethink the makeup of the committee.
They also raised concerns about transparency of the committee and asked that all of its discussions and meetings be kept public. The letter said it was the two exchanges’ and brokerage’s understanding that subcommittees of the equity market structure advisory committee would not need to meet requirements of the Sunshine Act, a U.S. law meant to keep government transparent.
The SEC has been exploring equity market structure reforms since early 2010. The review intensified in May that year following the “flash crash,” in which the Dow Jones Industrial Average plunged 700 points before rebounding sharply. (Reporting by Michael Erman; Editing by Bill Rigby)