|  | | 2004 News and Press Releases | | |
HEADLINE NEWS:
SEC Preps 'Best-Price' Overhaul - Trading-Regulation Proposal Would Require Full List Of Offers, 'Intermarket Sweeps' By Brokers
The Wall Street Journal. November 22, 2004
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EXCERPT: SECURITIES AND EXCHANGE Commission staffers are preparing to present an overhaul of rules that could radically alter the way billions of shares trade each day in the U.S. by establishing best price as the top priority for brokers handling investor stock orders. The proposed plan, which has been circulating among the SEC's five commissioners in recent days, expands a trading rule meant to ensure that investors secure the best price for stocks by extending the rule to all markets and to nearly all types of stock orders, rather than just certain ones, according to several people who have been briefed on the plan. The revised rule -- which would require better electronic linkages between all markets -- mandates that no matter what, investors are entitled to the best price for most orders on both the New York Stock Exchange and the Nasdaq Stock Market, provided that the orders could be filled automatically and without human intervention, according to these people. In a new twist, the rule also would require that brokers "sweep" all markets to fill an order at the best price per share at a given time, these people add. The 200-plus-page proposal, written by senior market-regulation officials, is scheduled for a vote Dec. 15 and may not be fully disclosed to the public before then. |
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