|  | | 2004 News and Press Releases | | |
HEADLINE NEWS:
SEC Propose Stock-Trading Changes
Staff Writer
General Financial/ Business News. December 15, 2004
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EXCERPT: Federal regulators on Wednesday proposed a revamped package of changes in how U.S. stocks are traded, extending the reach of a rule requiring brokers to obtain the best possible price for customer orders even if it means going to another market and takes longer. The Securities and Exchange Commission voted, 4-1, to open the revised proposal to public comment for 30 days. It could be formally adopted sometime after that. The SEC originally had planned to vote on adopting it Wednesday, but an outcry from stock exchanges, professional traders and other Wall Street players wishing to weigh in on the new plan led the agency to postpone a final decision.
The proposal made Wednesday removes a provision allowing investors to opt out of the so-called "trade-through" rule on a trade-by-trade basis if they want speed regardless of price. The allowance, put forward by the SEC last February, had been opposed by the head of the New York Stock Exchange. Under the revised plan, the trade-through rule requiring brokers to get the best possible price would apply to all stock markets and nearly all types of trading orders, assuming that they could be filled electronically. In addition, brokers would be required to "sweep" all the markets to find the best possible price. |
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