Gensler Delivers Remarks on Competition at SIFMA’s Annual Meeting

In a speech delivered at the Securities Industry and Financial Markets Association (SIFMA) annual meeting, SEC Chair Gary Gensler noted the important role competition plays in financial markets. Gensler stated, “The whole economy benefits when there’s greater competition among investors, issuers, and the intermediaries in the middle.” He added that in order to ensure competition remains a prominent force in markets, the SEC utilizes three tools: transparency, access, and fair dealing. Gensler stated transparency can address “information asymmetries,” accessible markets bring in more competition, and a level playing field means markets are fair for all.

In his remarks, Gensler highlighted several areas the SEC is focused on regarding competition: fixed income, equity markets, and private markets. In the fixed income space, the SEC is focused on central clearing, encouraging certain liquidity-providing market participants to register as dealers, and increasing post-trade transparency, among other regulatory issues. In the equity markets, the SEC is examining how market orders are executed, including off-exchange order filling and a potential SEC-level Best Execution rule. Gensler also touched on the work the SEC is doing in the private market space, including a proposal to require registered private fund advisers to provide detailed reporting to investors of fees, expenses, and performance, among other information.