Carl Levin

I look at statistics such as the one that I believe you cited, Senator, that two-thirds of Americans had equities in their account not too long ago, maybe a decade ago, and now it is half; that participation in the equities markets is at a…

Trust is really about saying: 'Without me paying attention, I believe that the right things are happening in my best interests.'

If transparency is the answer, should the government force transparency?

I am highly concerned about government interference in the marketplace.

And, therefore, I think the government would be very helpful in helping to get the industry to coordinate to a level to make these issues easier to identify.

When you say 'agency,' what do you mean?

Some argue that 30 cents on an order is a tiny, minuscule amount, you have given a very strong answer or response to that.

And that would hurt regular investors while others may benefit the market?

Has the proliferation of trading venues and order types created opportunities for predatory high-frequency traders to take advantage of investors?

A lot of other people are insisting on it, and I happen to agree with that, but it is not----

I believe, Mr. Katsuyama, that you indicated that the maker-taker system creates a conflict of interest.

New technologies should not erase enduring values. Financial markets cannot survive on technology alone.

At least that step ought to be taken.

But are there also subjective factors in that determination for both?

The routing could be done better.

The secondary markets exist for investors and public companies, and their interests must be paramount.

I hope this hearing will educate the public about high-frequency trading and broker conflicts of interest.

Conflicts of interest damage investors and markets--first, by depriving investors of the certainty that brokers are placing the interests of their clients first and foremost.

The highest rebate and best execution do not go together.

I find that to be, frankly, a pretty incredible coincidence.

But the answer to the question is different brokers, even with the same clients, can reach different conclusions about the best venue.

Who decides whether an exchange or a wholesaler has provided best execution?

I think we have all heard about a recent survey of equity market participants that suggested that the majority of those surveyed thought that the equity markets were not fair for all participants.

But do you think the average investor can make a decision on where a broker is going to get best execution?

Does that create a conflict of interest?