The Capital Markets, Securities and Investment Subcommittee held a hearing today to examine the current state of the U.S. equity markets—specifically what is working well in today’s markets, as well as areas that need improvement or are impacting the optimal functioning of the markets.
“The U.S. equity markets are widely recognized for being the deepest, most liquid, and most competitive markets in the world. However, it doesn’t mean that these markets are perfect and that there is no room for improvement. That is why a truly comprehensive review of equity market structure is long overdue,” said subcommittee Chair Bill Huizenga (R-MI). “In order to move markets forward, we need to know where they’ve been. Today’s hearing was an important first step in doing just that.” To watch Chairman Huizenga's entire opening statement, click on the video below.
Key Takeaways from the Hearing:
Despite significant technological advancements and constantly evolving industry practices in today’s market, the statutory framework that governs equity market structure remains largely unchanged.
In order to determine what is the appropriate statutory framework to represent today’s markets and – more importantly – to build in sufficient flexibility that will allow our markets to continue to evolve and allow innovation, we must first analyze how the equity markets have evolved, what is working, and what needs to be improved.
Topline Quotes from Witnesses:
“In many ways, today’s markets bear little resemblance to those of just a decade ago. The old images of brokers fielding telephone calls and floor traders hollering orders has long since given way to a profoundly interconnected, technology-driven marketplace that transacts across an astonishing array of exchanges and trading venues… Yet, as markets have advanced, the fundamental structure that underpins them has not evolved to benefit all markets segments equally.” - Tom Wittman, EVP and Global Head of Equities, NASDAQ
“Overall costs to investors in the U.S. equity marketplace have fallen and are among the lowest in the world, and market quality and reliability continue to improve. Retail customers now have low-cost, immediate access to our markets with exceptional execution quality. However, Regulation NMS has also contributed to some unintended consequences throughout the marketplace. Regulation NMS has created a complex and fragmented market, which may increase costs for some market participants.” - Chris Concannon, President and COO, Chicago Board of Options Exchange
“The United States has the largest percentage of individual investor participation and the deepest and most liquid markets in the world. As stakeholders and policymakers debate possible changes to our market structure, it is critical to remember how efficient and resilient our markets are to the benefit of retail investors that Charles Schwab and others serve every day. That being said, the evolution we have seen has created odd incentives and antiquated systems and everything should be on the table for review.” - Jeff Brown, SVP, Legislative and Regulatory Affairs, Charles Schwab
“All issuers and investors, large and small, should have access to the bounty of the capital markets. On behalf of the NYSE’s listed companies and investors, we encourage right-sized regulation for our capital markets system.” - Thomas Farley, President, New York Stock Exchange
Today we celebrate National Adoption Day. West Michigan has a strong history of opening its doors to children in search of a forever home. With the holidays approaching let's pray that even more loving families in our community and across the nation welcome children into their home.
BREAKING - The House just passed legislation to cut taxes for West Michigan middle class families and small businesses! The Tax Cuts and Jobs Act provides more opportunity for West Michigan families living paycheck to paycheck to achieve the American Dream.
Our plan lowers tax rates, doubles the standard deduction, increases the Child Tax Credit, preserves the Adoption Tax Credit, and creates a new Family Tax Credit that will provide real tax relief for hardworking middle class families across West Michigan. Additionally, our legislation will increase economic growth by cutting taxes on small businesses so they can invest more of their money into growing their local business and create new jobs in our community. Lastly, our legislation also lowers the corporate tax rate so Michigan job creators of all sizes can compete against foreign companies, expand in Michigan, and create good-paying jobs.
Our nation’s tax code hasn’t been overhauled in three decades. In that time, economic growth has failed to reach its potential while special interests and the well-connected have created loopholes for themselves at the expense of low and moderate income families. The Tax Cuts and Jobs Act reverses this trend by simplifying our tax code, eliminating loopholes, and delivering tax relief for hardworking middle class families and small businesses.
Now it's time for the Senate to act!!!!
Recently, I sat down with FOX 17 to discuss how our tax proposal will help West Michigan families living paycheck to paycheck keep more of their hard earned money. Our plan will also cut taxes for small businesses, grow the economy, and create jobs. Watch the interview below and get more details on this important legislation at FairandSimple.GOP