New SEC website opens up information on market trends.
The Securities and Exchange Commission has made it easier to know what is going on in the stock market, including how many trades actually reach fruition.
At www.sec.gov/marketstructure, it is now possible to see not only the price and volume of trades, but also the total number of new orders, and the total number of cancellations, all broken down by exchange.
The site uses a system called MIDAS, which the SEC bought from Tradeworx last year. It went into operation on Oct. 9.
“We are launching what we believe to be a game changer that focuses the market structure debate as never before on data and analysis rather than anecdote,” said SEC Chair Mary Jo White. “We’ve made great strides here at the SEC transforming how we take in market data, store it, and share it throughout the agency. By also making this information publicly accessible, two great things should happen. It should increase efficiency so people don’t have to struggle to find this information. And it should spur innovation by unlocking the power of data and research to unlock a wealth of ideas from investors, market participants, and academics.”
Using MIDAS, experts at the SEC are able to study the data and produce reports to help the agency’s thinking on market structure.
Some of the information available on this website that was not previously available publicly includes:
- Ratios related to the number and volume of orders that are canceled instead of traded.
- Percentage of on-exchange trades and volume that are not disseminated on the public tape (odd-lot trades of less than 100 shares).
- Percentage of on-exchange trades and volume that are the result of hidden orders.
- Quarterly distributions analyzing the lifetime of quotes ranging from one millionth of a second to one day.
Office of Analytics and Research Associate Director Gregg Berman has reported the initial research from the new technology shows that only three percent of orders actually get traded, while 97 percent get canceled.
In its first week, the website provided white papers on Market Fragmentation and The Speed of the Equity Markets.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.