SEC Chairman Proposes Review of Rules Underpinning Stock Trading
- Gensler asked agency staff to examine range of trading issues
- Puts focus on fees that market makers pay for order flow
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Wall Street’s top regulator is calling for a broad review of rules that underpin U.S. equity trading, the latest evidence that the meme-stock mayhem is likely to trigger an overhaul.
U.S. Securities and Exchange Commission Chair Gary Gensler said Wednesday that he’s asked the agency’s staff to examine best execution requirements -- legal mandates that ostensibly force brokers to process customers’ orders at advantageous prices. Gensler added that the process for settling transactions could be shortened to the same day. He also reiterated concerns that companies behind popular smartphone apps have profit incentives to hook consumers on trading.