SEC Proposes Scrapping 2005 Order Protection Rule After Unanimous 3-0 Vote
Updated
Updated · Reuters · Jun 11
SEC Proposes Scrapping 2005 Order Protection Rule After Unanimous 3-0 Vote
3 articles · Updated · Reuters · Jun 11
Summary
The SEC unanimously moved to eliminate the order protection rule, a 2005 requirement that stock trades be executed at the best quoted price across venues.
SEC officials said advances in trading technology and market structure have turned the rule into a source of higher compliance and connectivity costs, added complexity, and little investor benefit.
Chair Paul Atkins, who opposed the rule when it was adopted in 2005, cast the proposal as part of a broader Trump administration effort to remake U.S. securities-market structure.
Better Markets warned rescinding the rule would worsen prices for retirement savers while boosting profits for securities firms and high-frequency traders; other price-transparency rules would remain in place.
A 60-day public comment period now begins before the commission decides whether to finalize the rollback.