August 1, 2012; Washington, D.C.—Wholesale Markets Brokers Association Americas Chair Christopher Giancarlo issued the following statement this afternoon in regards to today’s exceptional volatility in the stock market.
“Today’s reports of the disruption in the equity markets underscore the need for multiple modes of execution. Interdealer brokers which are members of the Wholesale Markets Brokers Association Americas employ a number of different systems to ensure safe, efficient, liquid and reliable markets. Modes of execution include electronic, voice brokering and hybrid combinations of both. Our members have learned over years of experience that one mode of trading does not fit all needs. For certain products, particularly at times of market stress, human involvement, in the form of voice brokering, can often prevent unintended and costly market swings. Forcing US swaps markets to be exclusively executed by electronic trading systems without the alternative of skilled human intermediation, as some have proposed, could result in market disruption and increased costs for American investors and businesses. The WMBAA remains committed to working with regulators to preserve broking through multiple modes.”
Wholesale Markets Brokers’ Association, Americas
The Wholesale Markets Brokers’ Association, Americas (WMBAA) is an independent industry body representing the largest inter-dealer brokers (IDBs) operating in the North American wholesale markets across a broad range of financial products. The five founding members of the group are: BGC Partners; GFI Group; ICAP; Tradition; and Tullett Prebon. The association seeks to promote the quality and standards of the industry and the critical role played by wholesale brokers in the efficient functioning of financial markets, working with key public policymakers on regulation and oversight of over-the-counter (OTC) markets and their participants. For more information, please go to www.wmbaa.org.
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