NEW YORK, (Reuters) – The Securities and Exchange Commission (SEC) could kick off on Wednesday the biggest reform of the rules of operation of the American stock markets in nearly 20 years, with the aim of favoring competition, transparency and fairness between stakeholders.
Among the proposals to be decided by the Wall Street policeman are new rules that would require intermediaries to subject individual investors’ buy or sell orders to an auction process in order to ensure that their retail clients can benefit the best possible execution conditions, while lowering execution fees, explained the SEC.
These changes, if adopted, will constitute the most significant change in the operating rules of Wall Street since the implementation in 2005 of the “Regulation National Market System”, which aimed to modernize and harmonize a transaction management system of more than more fragmented.
The SEC must also study the possibility of obliging stock market intermediaries to better inform their clients of the conditions under which their operations are carried out and of broadening the scope of the obligation to publish this type of information.
If the SEC decides favorably on these proposals, they will be the subject of a public consultation procedure before any decision on their application.
(Report John McCrank, French version Marc Angrand, edited by Blandine Hénault)
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