Citadel Securities flags US securities regulator about 24-hour trading risks
NEW YORK (Reuters) -Citadel Securities has sent the U.S. Securities and Exchange Commission a wish list for capital markets regulation, including warnings about the risks of 24-hour trading planned by exchanges.
The market maker founded by billionaire investor Ken Griffin said overnight trading requires a clear regulatory framework, as well as market infrastructure to support it, calling for consistency around dates.
Exchanges like Nasdaq, Cboe Global Markets (NYSE:CBOE) and Intercontinental Exchange (NYSE:ICE), the operator of the New York Stock Exchange, have announced plans for extended trading hours.
The 29-page letter, which became public on Wednesday, also contains proposals for equities, derivatives, treasuries, credit and digital assets. It includes requests for new regulation, as well as for the revision of some rules. The firm trades roughly $570 billion a day, according to its website.
The SEC did not immediately comment on Citadel’s capital markets proposals.
The lengthy list called for more regulation of so-called private rooms, or alternative trading systems in which the number of market participants is limited.
"These private rooms raise a number of concerns that warrant regulatory scrutiny," the firm said in the letter, adding that they do not comply with fair access and transparency rules.
Citadel’s wish list comes as Paul Atkins, who previously served as an SEC member from 2002 to 2008 and was seen as a business-friendly lawyer, was sworn as the regulator’s chairman earlier this month.
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