The Weekly Rant with Larry Tabb: Wall Street’s Technology Arms Race, Killing Innovation, and the Pros of Rebates

In a new video blog series, TABB Group founder and research chairman Larry Tabb takes a deep dive into one of the biggest competitive issues on Wall Street: the technology arms race. We’ve finally seen a return of innovation to the markets and an increase in fintech investment, with a focus on improving the customer experience, he says, but smaller firms don’t have the tech resources to keep up with the largest participants. Meanwhile, democrats are looking into implementing a new financial transaction tax and a tax on unrealized capital gains. These are terrible ideas, insists Tabb, who argues an FTT will hurt innovation and drive trading out of the US to offshore tax havens. Finally, he examines the SEC’s decision to put the transaction fee pilot on hold and explains the market efficiency benefits of rebates.

Interviewer: Larry Tabb

Source: TABB TV

Categories: Equities, Fintech / Crypto, Regulatory

Topics: Compliance, Data management, Equity trading, IT governance/infrastructure, Market structure: Exchanges, ATSs, ECNs, Market Surveillance/Technology, Regulations, Risk management, Trade Process Analysis, Trading technology infrastructure, Transaction cost research

TabbFORUM is an open community that provides a platform for capital markets professionals to share their ideas and thought leadership with their peers. The views and opinions expressed are solely those of the author(s). They do not necessarily reflect the opinions of TABB Group, its analysts, TabbFORUM and its editors, or their employees, affiliates and partners.


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