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Statement at Open Meeting on Disclosure of Order Handling Information

Commissioner Michael S. Piwowar

July 13, 2016

Let me start by joining my fellow Commissioners in thanking the staff for their extraordinarily hard work. I appreciate your dedication and patience during the development of this proposal, and I am very happy to vote in favor of it.

Since I returned to the Commission, I have heard frequent pleas for updates and enhancements to our order handling disclosure rules. Among the many constituencies that have advocated for increased transparency are academic researchers, including my fellow market microstructure nerds — and I mean that in the most endearing way possible. The public institutional order handling reports being proposed should be a rich new data source, as should the additional items that would be contained on retail order routing reports. Please tell us if the information proposed to be included in the reports represents the right set of metrics.

Of course, the transparency that the proposed rule would provide to customers about the handling of their orders also holds great promise. Like our proposal last fall requiring disclosure of alternative trading system operations,[1] today’s rulemaking would empower market participants to make more informed choices about where to direct their orders. This should, in turn, promote competition for better execution quality. Again, please submit comments on whether we have identified the disclosures that will be most useful.

Last week, the Equity Market Structure Advisory Committee made thoughtful recommendations to the Commission on possible equity market structure reforms. Today’s proposal is another step forward. I hope that our momentum continues and that enhancing equity market structure remains a “top priority” on the Commission’s agenda.

I have no questions. Thank you.

[1] Regulation of NMS Stock Alternative Trading Systems, Securities Exchange Act Release No. 76474 (Nov. 18, 2015), 80 FR 80998 (Dec. 28, 2015), available at

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