LULD Rules – Why The ETF Industry's "Open Letter" To The SEC Matters

LULD Rules – Why The ETF Industry’s “Open Letter” To The SEC Matters by Dave Nadig, Factset

This morning, a rather unprecedented thing happened. The ETF industry, as best as you can define it, got together and agreed on something important: that the SEC needs to seriously overhaul some of the market microstructure to fend off future trading problems in ETFs (and, for that matter, stocks).

(You can read the full below.)

There are a few reasons why I think this is important, but first, why do I call it unprecedented?

Why It Matters

In the beginning, back in 1993, there was the SPDR S&P 500: a simple product, built off the ideas of similar products in both Hong Kong and Canada,...