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Regulation NMS: Will the Real Winner Please Stand Up?

Regulation NMS: Will the Real Winner Please Stand Up?

According to a new report published by Aite Group, the U.S. securities industry will end up spending over US$500 million on IT during the next four years as key market participants scramble to comply with Regulation NMS.

By Sang Lee, Sang Lee

Boston, MA, April 14, 2005 – According to a new report from Aite Group, LLC, the passing of Regulation NMS, which has turned out to be one of the most contentious pieces of regulation to come out of Washington D.C. in many years, signals the next phase in adoption of electronic trading in the U.S. equities market. Although the true impact of Regulation NMS may not be known for a while, it seems quite clear that the U.S. equities market will go through another round of sweeping changes during the next few years.

According to Sang Lee, Managing Partner of Aite Group and the author of the report, "The final 3-2 vote by the SEC Commissioners highlights the controversy behind Regulation NMS." Lee goes onto add, "Even though the final impact will not be known for many years, Regulation NMS certainly signals the permanent status of electronic trading within the U.S. equities marketplace."

This is a 15-page Impact Note. Clients of Aite Group's Institutional Securities service can download the report.