As stock market officials sound the alarm about rattled investor confidence in the wake of the botched Facebook initial public offering last month, some traders and other market experts say there’s a basic problem contributing to the crisis: too many exchanges.
“There’s increasing competition over a smaller and smaller market,” said David Weild, former vice chairman of Nasdaq and now chairman of Capital Markets Advisory Partners, an investment advisory firm. “You just don’t have the stock trading volumes to support” them all, he said.
The pursuit of fresh volume is leading exchanges to court business from riskier traders, the experts contend, which is bad news for average investors.
Read More…
More on Securities And Exchange Commission
