The SEC proposed a new rule to stop national securities exchanges from offering volume-based transaction pricing on National Market System stock orders. Also, national securities exchanges would need specific anti-evasion rules and written disclosure policies and procedures if they offer volume-based transaction pricing.
According to SEC Chair Gary Gensler, “Currently, the playing field upon which broker-dealers compete is unlevel. Through volume-based transaction pricing, mid-size and smaller broker-dealers effectively pay higher fees than larger brokers to trade on most exchanges.”
The proposed rule aims to eliminate concerns about competition in the markets. Members qualifying for volume-based transaction pricing would need to submit this information to the SEC monthly, and the public could access this information via the SEC’s EDGAR system.
Public comments are open 60 days after the proposed release’s publication in the Federal Register.