SEC Proposes Rule to Ban Volume-Based Trading Discounts for Stock Brokerages
The Securities and Exchange Commission (SEC) has proposed a new rule that would prohibit national securities exchanges from offering volume-based transaction pricing for agency or riskless principal orders in NMS stocks. The rule aims to level the playing field for broker-dealers and promote competition in the markets. Exchanges offering volume-based pricing for member proprietary orders would be required to disclose certain information and implement anti-evasion measures. The proposal is open for public comment for 60 days.