Meaning: Arthur Levitt, a former chairman of the U.S. Securities and Exchange Commission (SEC), made this statement in the context of the changing landscape of the U.S. securities markets. In this quote, Levitt emphasizes the responsibility of market participants and regulators to adapt to the evolving market structure in a way that maximizes the benefits for the entire securities market ecosystem.

The quote reflects Levitt's belief that the market structure should be conducive to fostering positive changes that ultimately enhance the overall functioning of the U.S. securities markets. It underscores the importance of creating an environment that facilitates innovation, competition, and efficiency while ensuring that the benefits of these changes are widely distributed and contribute to the well-being of the market as a whole.

During his tenure as SEC chairman from 1993 to 2001, Levitt was a prominent advocate for investor protection and market integrity. He prioritized initiatives aimed at modernizing the regulatory framework and promoting transparency and fairness in the securities markets. In this context, the quote can be seen as a reflection of his commitment to shaping a market structure that serves the best interests of investors, issuers, and other stakeholders.

The concept of facilitating the development of a market structure that benefits the U.S. securities markets as a whole encompasses various dimensions. One aspect is the need to adapt regulatory frameworks to address emerging challenges and opportunities brought about by technological advancements and changing market dynamics. This may involve updating rules and standards to accommodate new trading mechanisms, such as electronic trading platforms and high-frequency trading, while safeguarding market stability and investor confidence.

Moreover, the quote implies a call for market participants to embrace responsible business practices that contribute to the overall resilience and efficiency of the securities markets. This could involve promoting market access and participation, fostering competition, and ensuring that market innovations are aligned with the principles of fairness, transparency, and investor protection.

In the context of the quote, the term "facilitate" suggests an active role for regulatory authorities in promoting a market environment that encourages constructive changes and discourages practices that could undermine market integrity or disadvantage certain market participants. This may involve conducting market research, engaging with industry stakeholders, and implementing regulatory measures that support the evolution of the market structure in a manner that aligns with the overarching objectives of investor protection and market efficiency.

Furthermore, the quote underscores the interconnectedness of different components within the U.S. securities markets and emphasizes the importance of considering the broader implications of market developments. It implies that changes in market structure should not be pursued in isolation, but rather in consideration of their potential impact on the overall functioning and health of the securities markets.

In conclusion, Arthur Levitt's quote conveys a strong message about the imperative to shape a market structure that optimally serves the U.S. securities markets as a whole. It emphasizes the shared responsibility of market participants and regulators in fostering a market environment that promotes positive changes and ensures that the benefits of these changes are distributed equitably across the market ecosystem. Levitt's words reflect a commitment to upholding the principles of investor protection, market integrity, and efficiency while embracing the evolving nature of the securities markets.