US Stock Market: Citadel Securities Warns SEC Rule Change Could Hurt Retail Investors, Market Liquidity
Citadel Securities said scrapping the rule would divert trading from public exchanges and undercut retail investors, citing projected compliance savings of about $250,000 a day.
- On Monday, Citadel Securities urged the SEC to reconsider a proposal to scrap the "order protection rule," a regulation requiring execution of stock trades at the best available price.
- In June, the SEC unanimously proposed eliminating the regulation, arguing it drives up costs and complexity, though Citadel challenged the agency's economic analysis as "fatally flawed."
- Removing the rule would allow brokers to bypass best displayed exchange prices, Citadel argued, potentially weakening incentives for participants to display competitive quotes and diminishing price discovery.
- Projected compliance savings of about $250,000 per trading day are modest, the firm noted, urging the Commission to consider a minimum volume threshold for exchanges instead.
- If adopted, the proposal pursued by SEC Chairman Paul Atkins' commission marks another step in the Trump administration's plans to remake the structure of securities markets.
12 Articles
12 Articles
The Economic Times
Times of IndiaUS Stock Market: Citadel Securities warns SEC rule change could hurt retail investors, market liquidity
Citadel Securities has urged the SEC to reconsider its proposal to eliminate the order protection rule, warning it could weaken market liquidity, price discovery and retail investor protections. The market maker argues the change may divert trades from public exchanges and recommends alternatives, including minimum trading-volume thresholds for exchanges to qualify for protected status.
Ondo Finance Backs SEC’s Proposed Rollback of Reg NMS Trade Through Rule
Ondo Finance – which operates a transaction platform for tokenised assets – has added its support to a Securities & Exchange Commission (SEC) proposal to roll back the long-standing ‘trade through rule” related to Regulation NMS. The SEC’s motivation is that it now believes the rule leads to market fragmentation and increased costs, while Ondo is...
MFA Urges SEC to Reconsider Changing Equity Market Rules
MFA urged the Securities and Exchange Commission (SEC) to conduct a more comprehensive assessment of its proposal to rescind key Regulation NMS rules governing U.S. equity markets before moving forward with such significant changes. While the SEC seeks to simplify market structure, additional analysis is needed to determine whether the proposal would improve market outcomes or create unintended consequences for investors, market quality, and the…
The SEC Wants to Scrap a 20-Year Stock Rule, and Citadel Says Investors Could Pay
Citadel Securities urged the Securities and Exchange Commission (SEC) yesterday (Monday) to keep the order protection rule for US stocks. It said repeal could hurt retail investors and public exchanges.Without Rule 611, a trading center could execute an order at a worse price than a protected quote displayed elsewhere. US zero-commission brokers already route some retail orders to wholesalers, including Citadel Securities and Virtu Financial, in…
Coverage Details
Bias Distribution
- 80% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
