WASHINGTON (Pakistan Point News / Sputnik - 15th December, 2022) The main regulator for the US stock market said on Wednesday it was undertaking a sweeping overhaul of trading practices that had severely disadvantaged small investors in the marketplace.
"There isn't a level playing field among different parts of the market: wholesalers, dark pools and lit exchanges," Gary Gensler, chairman of the Securities and Exchange Commission (SEC) said in remarks released ahead of a hearing held to discuss ways to fix the problem. "The markets have become increasingly hidden from view, especially for individual investors."
SEC officials said the proposals would produce the biggest changes to US equity trading rules since 2005 by injecting more competition into the business of executing deals for smaller investors.
Among the SEC's proposed rules is a new auction system that would force brokers to offer retail investor orders of under $200,000 to a wider group of trading venues.
Another rule, riding on the so-called best execution practice, required brokers to be transparent in stating how they got the best price for client orders.
