Regulatory Alerts2022-12-14
Order Competition Rule
The Securities and Exchange Commission proposes amending Regulation NMS to establish a new Order Competition Rule that mandates greater market-wide competition for individual investor orders. The rule prohibits restricted trading centers from internally executing certain retail orders at a set price unless those orders are first exposed to competition in a qualified auction operated by an open trading center. By requiring order-by-order competitive exposure and defining specific exceptions, the proposal reduces market segmentation and adverse selection costs to deliver more favorable execution prices for retail investors.
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