Hearing Prep:

“The U.S. stock exchanges will be under pressure at a House hearing on Thursday to defend their opposition to the Securities and Exchange Commission’s “consolidated audit trail,” a market surveillance tool envisioned after the “flash crash” of 2010. The hearing is being held to consider legislation designed to stop the CAT. “The for-profit exchanges have worried about the costs,” says Tyler Gellasch, one of the hearing witnesses and the executive director of the Healthy Markets Association, which represents CalPERS and other asset managers.

“Put simply, for-profit exchanges should not be empowered by the government to set the terms and the costs of the regulatory apparatus that oversees the markets—including their competitors,” he says in prepared testimony. Gellash will face off at the hearing against Chris Concannon, president at Cboe Global Markets, and a skeptic of the CAT.

Read more in Politico here.

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