Khody Azmoon is CEO and co-founder at BLOX Markets.
What were the key theme(s) for your business in 2024?
At BLOX Markets, we are actively working on launching a new retail-focused U.S. equities trading venue. While our venue is not yet operational and remains subject to regulatory filings and approvals, our key business theme is centered on the sustained growth of retail trading. Although retail activity has moderated from its 2020 peaks, the data indicates that current trading levels remain significantly higher than pre-COVID benchmarks, with further growth anticipated in 2025.
Additionally, we continue to maintain a positive outlook on the equity market structure amendments concerning Tick Sizes, Access Fees, and Transparency of Better-Priced Orders. These changes are expected to enhance execution quality for the underlying retail investor by promoting tighter spreads, reducing exchange fees, and increasing fee transparency.
What was the highlight of 2024?
In September 2024, the SEC passed the second of its four equity market structure proposals, focusing on Tick Sizes, Access Fees, and Transparency of Better-Priced Orders. Originally introduced as part of a broader package in December 2022, these amendments, like the Disclosure of Order Execution Information passed in March 2024, were among the least contentious proposals. Notably, both proposals received unanimous 5-0 SEC Commission approval, signaling strong bipartisan support and enhancing the likelihood of successful implementation.
What surprised you in 2024?
The two legal challenges to the equity market structure changes to Reg NMS covering Tick Sizes, Access Fees, and Transparency of Better-Priced Orders—were filed by NASDAQ and CBOE in a joint effort, with a separate challenge submitted by a third party, We The Investors. Notably, no other exchanges or market participants joined these actions, potentially reflecting a low perceived likelihood of success given prior court decisions that have generally favored the SEC in similar cases. Nevertheless, the SEC adopted a pragmatic approach by granting a partial stay until the D.C. Circuit delivers its ruling.
What are your expectations for 2025?
A lot is happening in 2025, including a new SEC Chair. Staying on theme, we’re hearing from numerous market structure experts that given the current landscape, the equity market structure changes to Reg NMS—specifically related to Tick Sizes and Access Fees—could be delayed until 2026 but expect it to be implemented, nonetheless.
What trends are getting underway that people may not know about but will be important?
We’ve noticed a number of emerging trends on the horizon. We’re seeing a number of quantitative trading firms are planning to extend their equities operations into electronic market-making. Similarly, many established electronic market makers are looking to enter the equities market-marking or broaden their current equities market-making efforts to cover additional symbols.
With the upcoming Reg NMS changes to Tick Sizes, Access Fees, and Transparency of Better-Priced Orders—we anticipate more electronic market makers transitioning from short-duration, spread-based strategies to a greater emphasis on medium-term, alpha-driven approaches to adapt to the evolving landscape.
That being said, our launch date is flexible and a moving target, but we’re aiming to hopefully launch later next year. See you in 2025!
