The Washington Post

SEC seeks review of stock trading rules

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Wall Street’s top regulator is calling for a broad-based review of the rules that underpin trading in the U.S. equities market.

Gary Gensler, the chair of the U.S. Securities and Exchange Commission, said Wednesday that he asked the agency’s staff to examine issues related to stock trading including so-called bestexecut­ion requiremen­ts. He also said that stock-trade settlement process could be shortened to the same day.

Market trading rules and practices have come under intense scrutiny in the wake of wild swings in meme stocks such as Gamestop and AMC Entertainm­ent. While he didn’t mention them by name, Gensler directed some of his most pointed comments to market makers like Citadel Securities and Virtu Financial. Those wholesale brokerage firms pay retail brokers a fee to execute clients’ trade orders.

On Wednesday, Gensler said he had directed the SEC staff to focus on whether retail investors are indeed getting the best deal for their trades. He raised issues around so-called best-execution requiremen­ts that brokers must comply with when handling trades.

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