2017 FINRA/Columbia Conference on Market Structure: Market Microstructure and Capital Formation
FINRA/ COLUMBIA Market Structure Conference: Market Microstructure and Capital Formation
On Thursday, October 26th and Friday, October 27th, 2018, the Financial Industry Regulatory Authority and Columbia University's Program in the Law and Economics of Capital Markets (Columbia Law School/ Columbia Business School) and the Program for Financial Studies (Columbia Business School) co-hosted the third annual conference on U.S. capital market structure. This two-day event took place in Washington, DC.
The focus of the 2017 conference was on the intersection of market microstructure and capital formation.
This conference was designed to facilitate discussion around topics related to market structure design and oversight, including: alternative methods for raising capital; secondary market trading and the cost of capital; the impact of innovation on market microstructure; and the regulatory impacts on microstructure affecting the cost of capital. Topics discussed included IPO volume, securities crowdfunding, bond market transparency, order flow leakage, and toxic arbitrage.
The event featured Robert Cook, President and CEO of FINRA; The Honorable Michael Piwowar Commissioner of the U.S. Securities and Exchange Commission; Jamie Selway, Managing Director of Investment Technology Group (ITG); and The Honorable Representative Bill Huizenga, Chairman of the Subcommittee on Capital Markets of the U.S. House Financial Services Committee. FINRA
Thursday, October 26, 2017 12:30 - 1:25 p.m. Registration & Light Lunch FHI 360 1825 Connecticut Avenue, NW 1:25 - 1:30 p.m.
Opening Remarks Lawrence Glosten, Columbia Business School, Columbia University
1:30 - 1:45 p.m. Welcome: Robert Cook, President & CEO, FINRA
1:45 - 2:00 p.m. Guest Speaker: The Honorable Representative Bill Huizenga Chairman of the Subcommittee on Capital Markets U.S. House Financial Services Committee
2:00 - 2:15 p.m. Break
2:15 - 3:00 p.m. ”Brokers and Order Flow Leakage: Evidence from Fire Sales” Presenter: Marco DiMaggio, Harvard Business School Discussant: Jongsub Lee, Warrington College of Business, University of Florida
3:00 - 3:45 p.m. ”Toxic Arbitrage and Price Discovery” Presenter: Kolja Johannsen, Warwick Business School, University of Warwick Discussant: Ingrid Werner, Fisher College of Business, Ohio State University
3:45 - 4:00 p.m. Break 4:00 - 4:45 p.m. ”Do (Should) Brokers Route Standing Limit Orders Seeking to Trade U.S. Equity Options to Wholesalers?” Presenter: Robert Battalio, Mendoza College of Business, University of Notre Dame Discussant: Amber Anand, Whitman School of Management, Syracuse University
4:45 - 5:30 p.m. “Do Buy-side Institutions Supply Liquidity in Bond Markets? Evidence from Mutual Funds” Presenter: Krishnakumar Venkataraman, Cox Business School at Southern Methodist University Discussant: Tavy Ronen, Rutgers Business School, Rutgers University
6:00 p.m. - 6:45 p.m. 6:45 p.m. - 8:30 p.m. Networking Reception Dinner Remarks & Introduction of Dinner Keynote: Jonathan Sokobin, SVP & Chief Economist, FINRA Charles Jones, Columbia Business School, Columbia University Foxhall Ballroom The Dupont Circle Hotel 1500 New Hampshire Avenue, NW Washington, DC with remarks by The Honorable Michael Piwowar Commissioner, U.S. Securities and Exchange Commission
Friday, October 27, 2017
8:00 - 9:00 a.m. Registration & Breakfast FHI 360 1825 Connecticut Avenue, NW
9:00 - 9:10 a.m. Welcome / Morning Session Chair Charles Jones, Columbia Business School, Columbia University
9:10 - 9:45 a.m. “Soft and Hard Information and Signal Extraction in Securities Crowdfunding” Presenter: Anzhela Knyazeva, Senior Financial Economist, U.S. Securities and Exchange Commission
9:45 - 10:30 a.m. ”NASDAQ Reforms and the Cost of Capital” Presenter: Terrence Hendershott, Haas School of Business, University of California at Berkeley Discussant: Frank Hatheway, Chief Economist & Vice President, Nasdaq, Inc.
10:30 - 11:00 a.m. Break 11:00 - 11:45 a.m. Practitioners’ Viewpoint: Equity Markets, Market Microstructure & Capital Formation Moderator: Chris Stone, Vice President, FINRA Panelists: John Armour, Oxford Law, University of Oxford & Fellow, European Corporate Governance Institute; Cromwell Coulson, President & CEO, OTC Markets Group, Inc.; Merritt Fox,, Columbia University; John Malitzis, Deputy General Counsel and Chief Surveillance Officer, Citadel Securities
11:45 - 12:30 p.m. Practitioners’ Viewpoint: Debt Markets, Market Microstructure & Capital Formation Moderator: Samir Misra, Partner, Oliver Wyman Panelists: Thomas Eady, Senior Policy Advisor of Trading and Markets, U.S. Securities and Exchange Commission; William Gartland, CFA & Vice President, Fixed Income Data and Analytics, Broadridge Financial Solutions, Inc.; Alexander Sedgwick, CFA and Vice President, Head of Fixed Income Market Structure in Electronic Trading and Global Trading, T. Rowe Price
12:30 - 2:00 p.m. Luncheon and Conversation with Afternoon Keynote Jamie Selway, Managing Director, Investment Technology Group (ITG) Tom Gira, Executive Vice President, FINRA
2:00 - 2:10 p.m. Afternoon Session Chair Lawrence Glosten, Columbia Business School, Columbia University
2:10 - 2:55 p.m. ”Do You See What I See? Transparency and Bond Issuing Costs” Presenter: Spencer Martin, University of Melbourne Discussant: David Krein, Head of Research, MarketAxess Holdings Inc.
2:55 - 3:05 p.m. Break 3:05 - 3:50 p.m. “Structural Changes in Corporate Bond Underpricing” Presenter: Florian Nagler, Assistant Professor, Bocconi University
3:50 - 4:00 p.m. Closing Remarks Lawrence Glosten, Columbia Business School, Columbia University