United States SEC Proposes Transparent Stock Trade Auction after 2021 Meme Stock Mania, More Disclosure on Fees & Data
10th June 2022 | Hong Kong
The United States Securities and Exchange Commission (SEC) Chairman Gary Gensler has proposed new transparent trading processes for brokerages after the 2021 Meme stock mania, including requiring stock trades to go through a centralised auction to execute best prices and to disclose data on trading fees & timing of trades. Currently, brokerages can execute through wholesale broker, if the best price matches or better public exchange price. But market makers can better the public exchange price, which retail clients do not have access. In addition, with the disclosure on trading fees & timing of trades, any trading rebates from wholesale brokers or financial institutions will know be disclosed. These proposed change will affect brokerages to offer zero-percent commission trading.
“ United States SEC Proposes Transparent Stock Trade Auction after 2021 Meme Stock Mania, More Disclosure on Fees & Data “
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