The SEC will vote next week on part of the US stock trading overhaul package


(Bloomberg) — The U.S. Securities and Exchange Commission will vote next week on some of the biggest overhauls of stock market rules in nearly two decades, including how prices are traded and processed.

SEC commissioners are scheduled to decide Wednesday whether to finalize measures that would change the way brokers, market makers and exchange businesses operate. One would change the way exchanges negotiate discounts with brokers to attract more volume to their exchanges. Another would set minimum price increases for stock markets, according to the agency agenda.

The SEC unveiled proposals in a package in December 2022 aimed at making the market fairer and more transparent. The effort was largely in response to the meme stock trading frenzy.

Read more: Wall Street stock trading is set for review under new SEC plan

A disclosure proposal was finalized in March, requiring retail brokers to release similar data to exchanges, wholesale firms and alternative trading systems.

But the most controversial measure is not on Wednesday's agenda. This proposal would require market-making firms and major exchanges to engage in auctions for the right to process capital orders within milliseconds. It drew criticism from market makers Virtu Financial Inc. and Citadel Securities – wholesalers that receive a significant amount of broker trade orders.



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