Securities and Exchange Commission Chairman Gary Gensler has outlined some major changes to U.S. stock trading rules the SEC is considering to protect retail stock traders.
These new rusle could have significant impacts on the business models of popular online brokerages, including Robinhood Markets Inc (NASDAQ: HOOD) and Charles Schwab Corporation (NYSE: SCHW).
What Happened: At the Piper Sandler Global Exchange and Fintech Conference on Wednesday, Gensler described a new requirement for brokers to submit retail investor orders to a new auction process through which firms will bid against each other to fill them.
“The markets have become increasingly hidden from view,” Gensler said.
“I’ve asked staff to make recommendations for the commission’s consideration around how to enhance order-by-order competition,” Gensler said Wednesday. “This may be through open and transparent auctions or other means.”
Related Link: SEC Chair Gensler Could Restrict Payment For Order Flow This Week: What Investors Need To Know
Gensler …
Full story available on Benzinga.com