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Key takeaways and comments on the SEC’s proposed Order Competition Rule

Written by
Fact checked by
Adam N.
Updated
3w ago

BrokerChooser is an independent global retail brokerage comparison service that has so far reviewed more than 100 brokers worldwide, and serves more than 200,000 users per month. Our team is constantly on the lookout for emerging trends in the retail brokerage universe.

In this research, we commented on the proposed Order Competition Rule by SEC and offered a unique perspective from both the individual investor and broker-dealer viewpoints. Read on to learn what we’ve explored: 

  • The Order Competition Rule proposed by the SEC would require orders of individual investors to be exposed to competition in fair and open auctions before they could be executed internally by any market maker, with the aim of bringing greater competition in the marketplace for retail market orders.

  • Despite challenges concerning the rule’s implementation, we believe that the likely impact of the proposed Order Competition Rule could be net positive.

  • Our data shows that the proposed Order Competition Rule is addressing existing problems that affect US customers, while preserving important developments and benefits on US markets today such as zero-commission trading for customers and payment-for-order-flow revenue for brokers.

READ OUR PAPER ON THE PROPOSED ORDER COMPETITION RULE ⇩

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Author of this article

Zoltán Kormányos J.D.

Regulation • Fighting Scams • Safety

I'm a financial regulation enthusiast with more than 5 years of professional experience in the financial and legal sectors as a lawyer. My hands-on expertise covers a range of areas including financial market infrastructures, asset managers, broker-dealers, crypto exchanges and other crypto service providers operating in different jurisdictions such as the US, the UK, and the EU.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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