Robinhood Executive Attacks SEC's Plans to Shake Up Stock-Trading Rules (US.HOOD) - 09 iunie 2022
Mr. Gallagher said Wednesday that individual investors were enjoying huge benefits, such as zero-commission trading and lightning-fast execution of their stock orders, from the current structure of U.S. equity markets. One of the biggest changes being discussed by the SEC is a possible requirement to send more individual investors’ stock orders to auctions, where trading firms could compete to fill the order at the best price.
That would represent a big change from the current system, in which brokerages such as Robinhood route many of their customers’ orders to a few big electronic trading firms such as Citadel Securities and Virtu Financial Inc. Other changes under consideration at the SEC could lead more trades by small investors to be executed on stock exchanges.
They would require broker dealers and market centers to disclose more data around order execution quality to benefit investors, including a monthly summary of price improvement and other statistics, Gensler said. The rules would also seek to shrink the minimum pricing increment or so-called tick size to better align with off-exchange activity and harmonize the tick size to ensure all trading occurs in the minimum increment.