In Conversation with Justin Hughes – A Market Structure Enthusiast Doubling as a Portfolio Manager

In Episode 81, we look at market structure evolution through the lens of a career financial services portfolio manager Justin Hughes from Karl Kapital. In this episode, Justin reflects on market structure evolution and the tradeoffs between competition and fragmentation that resulted from Regulation NMS. He explains why zero commissions was a much bigger catalyst to marketplace volume growth than most market structure experts believe and admits that some marketplace innovations in new product offerings are moving away from core investing principles. Justin does not believe 24-hour trading will have much of an impact on overall volumes and questions whether investors trading overnight understand the cost of convenience. He finishes up in a debate with the host over the move to semiannual reporting by issuers, a practice he is opposed to and concludes with some tips for investors looking at the private credit space.

This podcast was recorded on June 2nd, 2026.

Chapter Headings

01:47 A Look Back on Demutualization of Exchanges

10:48 The Importance of Zero Commissions on Volume Growth

15:18 The Need for Guardrails on New Product Innovation

19:25 The Pros and Cons of 24-Hour Trading

26:10 Why is Justin Opposed to Semi Annual Reporting Cadence?

32:23 What Investors in Private Credit Need to Know?

Karl Kapital Disclosure:

https://fileshare.karlkapital.com/dl/d9kdbTxypKBr

For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

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