Financial Engineering Seminar: "SEC regulatory changes to the equity market - current proposals and recently adopted changes to market

Headshot of Steven Poser

Abstract

The SEC passed rules recently that will substantially alter US equity markets. Starting November 2025, many stocks,representing roughly half of all volume, will trade with a minimum tick size of one-half of one cent. At the same time, exchanges access fees to aggressively take liquidity will be capped at 10 cents per 100 shares executed, down from 30 cents. Additionally, in 2026, more detailed disclosure on odd lot liquidity will be published to the public tape. Finally, more detailed order execution information will start to be published in December 2025.

These changes will have far-reaching impact on how stocks trade and how investors and liquidity providers interact. There are many theories about what will actually happen once all the changes are in place. This discussion will attempt to unravel what might happen and what comes next.

Biography

Steven W. Poser is NYSE's Director of Research. Mr. Poser is an expert in US equity market microstructure, and worksclosely with other exchanges, the SEC, academia and member firms on market structure issues. He is responsible for providing solutions, analysis and messaging for NYSE US cash and equity options markets business lines and listings,including competitive and market quality analysis.

Prior to joining the NYSE, Mr. Poser was president of Poser Global Market Strategies Inc., an advisory and education global markets strategy firm, providing economic and technical forecasts of equity, fixed income, currency and commodity markets.Before forming Poser Global, he spent eleven years at Deutsche Bank, where he was Vice President, Quantitative andTechnical Analysis.

Mr. Poser is a former member of the Board of Directors of the Market Technicians Association, and is author of the highlyregarded book "Applying Elliott Wave Theory Profitability". He holds a B.A. in Mathematics and Computer Science from NewYork University, an MBA in Business Economics from Pace University and a post-MBA Certificate in Finance from NYU Stern School of Business.