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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.