The Securities and Exchange Commission of the United States will vote on a plan to revamp the regulations governing stock markets.

On Wednesday, the Securities and Exchange Commission will vote on whether to make some of the most significant changes to the structure of the American equity markets in nearly two decades, with the goal of increasing competition, transparency, and justice.

Moving Markets

According to the SEC, potential changes include new rules requiring marketable retail stock orders to be sent to auctions before being executed, a new standard for brokers to demonstrate they get the best possible executions for client orders, and lower trading increments and access fees on exchanges.

If implemented, the amendments would be the most significant adjustment to stock market rules since the SEC implemented the Regulation National Market System in 2005, with the goal of modernising and improving an increasingly fragmented and primarily computerised system.

The regulator will also evaluate whether to require brokers to provide more information about the quality of their customer deals as well as require additional firms to post order execution reports.

If the SEC votes to propose the modifications, they will be made available for public comment before the regulator proceeds.


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