Restoring Trust in the Stock Market

Our CEO, Stephen Howard, was quoted over the weekend in The New York Times Dealbook Section. 

Earlier in the week, award winning journalist Andrew Ross Sorkin’s “DealBook” column raised the challenge to readers of “How you’d fix the market” soliciting input from readers on how we might restore trust and fairness in the stock market. After receiving a ton of thoughtful submissions these were included:

  • “Have a zero percent capital gains tax on securities held more than two years. This would encourage long-term investing at the expense of short-term speculative trading.”— Bob Knutson in St. Paul, Minn.
  • “Limit how much of each new issue the big guys can grab and let the small fish get their nibbles first.”— Miriam Kelly in Baltimore
  • “Restore the uptick rule.”— Andrew Oliver in Marblehead, Mass.
  • “Buying back shares should not be allowed. It does nothing for the value of the company, nor does it lead to better investment performance.”— Joyce Hum in Ottawa
  • “Limit the total percentage of float allowed to be sold short. Anything over 100 percent seems to be a recipe for a short squeeze.”— Dan Niemiec in Chicago
  • “Have the exchanges process market orders in a manner that nullifies the machinery of high-frequency trading, like adding a random delay of between five and 15 seconds to any market order.”— Ronny Lempel in Redmond, Wash.
  • “Go to T-0 Equity Settlement, which reduces the overall credit exposures from trading T+2. Before anyone objects to the technical challenge, it is definitely possible as the China A share market operates this way.”— Stephen Howard in Hong Kong

Commenting on the quote, “…it was great to participate and offer my insights and suggestions, fantastic that one of them was reflected in Andrew’s column. We are all very interested to see what happens next.”

The New York Times DealBook


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