ON TABBFORUM, A FRESH LOOK AT MARKET QUALITY: FOCUS ON MARKET MICROSTRUCTURE

Regulators should not sign off on anything that doesn’t ensure both a fair and an efficient market, says Prof. Michael Aitken, CEO and chief scientist at the Capital Markets Cooperative Research Centre. Unfortunately, academics and regulators rarely consider market integrity when weighing market structure changes, he tells TABB Group’s Miranda Mizen, adding that in order to understand if a market structure change is good or bad, you must understand how it affects transaction costs, price discovery, market manipulation, insider trading and broker/client conflict.