Stock Market News

New SEC Rules Could Reshape How the Market Operates – WSJ

2022.06.06 23:47

New SEC Rules Could Reshape How the Market Operates - WSJ
New SEC Rules Could Reshape How the Market Operates – WSJ

By Sam Boughedda

The Wall Street Journal reported late Monday that the Securities and Exchange Commission is readying significant changes to the way the stock market operates as soon as this fall.

The article authored by Paul Kiernan and Alexander Osipovich states that after Chairman Gary Gensler asked SEC staff last year to look into ways to make the stock market more efficient for small investors and public companies, one idea that stuck was to require brokerages to route the majority of individual investors’ orders to auctions. From there, trading firms will compete to execute them, the article reads, citing people familiar with the matter.

The SEC has started speaking with market participants about their potential plans.

The potential new rule would mean market orders are handled differently, with Gensler wanting to make sure orders are executed at the best possible price.

Gensler has previously said the SEC is assessing the future of payment for order flow, a practice where some brokers, such as popular trading app Robinhood (NASDAQ:HOOD), accept payments to route trades to specified parties for execution.

The change under consideration would mean firms compete with each other to fill orders, altering their business model, which is under scrutiny. The current model allows the firms to make more money by trading against smaller retail investors.

The WSJ said some Wall Street firms pushed back last year after finding out their business models would be targeted. As a result, they have increased lobbying and campaign spending in Washington.

Shares of online retail broker Robinhood dipped lower following the WSJ article, closing down 0.7%. Market maker Virtu Financial, Inc. (NASDAQ:VIRT) closed down 3.3% amid the news.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 101,853.29 1.83%
ethereum
Ethereum (ETH) $ 2,538.09 2.68%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.47 5.79%
bnb
BNB (BNB) $ 649.74 1.06%
solana
Solana (SOL) $ 170.13 5.63%
usd-coin
USDC (USDC) $ 1.00 0.01%
dogecoin
Dogecoin (DOGE) $ 0.224244 5.09%
cardano
Cardano (ADA) $ 0.769076 6.08%
tron
TRON (TRX) $ 0.268514 2.12%
staked-ether
Lido Staked Ether (STETH) $ 2,537.46 2.52%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 101,715.25 1.93%
sui
Sui (SUI) $ 3.72 5.77%
chainlink
Chainlink (LINK) $ 16.21 4.94%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,047.76 2.83%
avalanche-2
Avalanche (AVAX) $ 23.75 8.12%
stellar
Stellar (XLM) $ 0.295768 5.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 6.49%
hedera-hashgraph
Hedera (HBAR) $ 0.199019 5.99%
leo-token
LEO Token (LEO) $ 8.91 0.84%
hyperliquid
Hyperliquid (HYPE) $ 24.52 3.33%
bitcoin-cash
Bitcoin Cash (BCH) $ 391.46 3.76%
the-open-network
Toncoin (TON) $ 3.07 8.32%
litecoin
Litecoin (LTC) $ 97.44 4.70%
polkadot
Polkadot (DOT) $ 4.77 6.36%
usds
USDS (USDS) $ 1.00 0.02%
weth
WETH (WETH) $ 2,538.09 2.61%
monero
Monero (XMR) $ 346.23 1.78%
pi-network
Pi Network (PI) $ 0.871817 26.36%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,708.42 2.70%
bitget-token
Bitget Token (BGB) $ 4.82 0.91%
pepe
Pepe (PEPE) $ 0.000013 4.09%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.17%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 101,858.29 1.82%
whitebit
WhiteBIT Coin (WBT) $ 30.27 0.44%
uniswap
Uniswap (UNI) $ 6.33 6.01%
bittensor
Bittensor (TAO) $ 423.28 6.85%
dai
Dai (DAI) $ 1.00 0.01%
near
NEAR Protocol (NEAR) $ 2.87 8.93%
aptos
Aptos (APT) $ 5.50 7.72%
aave
Aave (AAVE) $ 226.82 1.20%
okb
OKB (OKB) $ 53.91 1.35%
ondo-finance
Ondo (ONDO) $ 0.96651 4.73%
jito-staked-sol
Jito Staked SOL (JITOSOL) $ 204.51 5.70%
kaspa
Kaspa (KAS) $ 0.112868 8.33%
internet-computer
Internet Computer (ICP) $ 5.45 6.30%
ethereum-classic
Ethereum Classic (ETC) $ 19.10 5.33%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
tokenize-xchange
Tokenize Xchange (TKX) $ 35.31 2.84%