SEC Proposes Rule to Address Volume-Based Exchange Transaction Pricing for NMS Stocks
summary
The SEC proposed Rule 6b-1 to prohibit national securities exchanges from offering volume-based transaction pricing for agency-related orders in NMS stocks to promote fair competition.
paragraph
The SEC proposed Rule 6b-1 under the Securities Exchange Act of 1934 to prohibit volume-based transaction pricing for agency-related orders in NMS stocks. Exchanges offering volume-based pricing for proprietary orders must implement anti-evasion measures and disclose certain information monthly via EDGAR. The proposal aims to level the playing field for broker-dealers and promote fair competition in equity markets.
narrative
The Securities and Exchange Commission (SEC) proposed Rule 6b-1 to prohibit national securities exchanges from offering volume-based transaction pricing for agency-related orders in NMS stocks, citing concerns about competition in the markets. The proposal aims to level the playing field for broker-dealers by eliminating fee disparities that disadvantage mid-sized and smaller firms. Exchanges offering volume-based pricing for proprietary orders will be required to implement anti-evasion measures, maintain written policies to prevent misuse, and publicly disclose monthly data on pricing tiers and qualifying members via EDGAR. The proposal does not impose penalties or fines but seeks to refine its impact on market fairness and transparency through public comment. The public comment period will remain open for 60 days after publication in the Federal Register. The goal is to promote fairer competition in equity markets. The SEC Chair, Gary Gensler, stated that the current playing field is unlevel and that the proposal will elicit important public feedback on promoting competition amongst equity market participants.
Classified non-corporate(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Rule 6b-1
Parties
sec chair gary genslerSecurities and Exchange Commission
Keywords
transaction pricingvolume-based transactionpricingvolume-basedtransactionnmsstocksexchangepricing connectionconnection executionagency-related ordersexchangesordersvolume-based exchangeexchange transaction
Exhibits & Attached Documents (2)
Extracted insights
Entities 2
- agency sec chair gary gensler
- agency Securities and Exchange Commission
Triples 9
- Securities And Exchange Commission proposed new rule that would prohibit national securities exchanges from offering volume-based transaction pricing in connection with agency-related orders in NMS stocks
- Proposed Rule 6b-1 would prohibit national securities exchanges from offering volume-based transaction pricing in connection with agency-related orders in NMS stocks
- Proposed Rule 6b-1 would require exchanges that offer volume-based transaction pricing for member proprietary orders in NMS stocks to disclose certain information
- Exchanges must submit disclosed information to the Commission on a monthly basis
- Public will be able to access information through the Commission’s EDGAR system
- Proposed Rule 6b-1 would require exchanges that have volume-based transaction pricing for member proprietary orders in NMS stocks to have anti-evasion measures
- SEC Chair Gary Gensler said the playing field upon which broker-dealers compete is unlevel
- SEC Chair Gary Gensler said volume-based transaction pricing causes mid-sized and smaller broker-dealers to pay higher fees than larger brokers
- SEC Chair Gary Gensler said he is pleased to support the proposal because it will elicit important public feedback
PDF (from attached: pdf)
Text layers
Extracted body text (2,630c)
The Securities and Exchange Commission today proposed a new rule that would prohibit national securities exchanges from offering volume-based transaction pricing in connection with the execution of agency or riskless principal (“agency-related”) orders in NMS stocks. The proposal also would require national securities exchanges to have certain anti-evasion rules and written policies and procedures and disclose certain information if they offer volume-based transaction pricing for member proprietary volume in NMS stocks. “Currently, the playing field upon which broker-dealers compete is unlevel,” said SEC Chair Gary Gensler. “Through volume-based transaction pricing, mid-sized and smaller broker-dealers effectively pay higher fees than larger brokers to trade on most exchanges. We have heard from a number of market participants that volume-based transaction pricing along with related market practices raise concerns about competition in the markets. I am pleased to support this proposal because it will elicit important public feedback on how the Commission can best promote competition amongst equity market participants.” Proposed Rule 6b-1 under the Securities Exchange Act of 1934 would prohibit national securities exchanges from offering volume-based transaction pricing in connection with the execution of agency-related orders in NMS stocks. It also would require exchanges that offer volume-based transaction pricing in connection with the execution of members’ proprietary orders in NMS stocks to disclose certain information, including the number of members that qualify for each transaction pricing tier that the exchange offers. Exchanges would be required to submit this information to the Commission on a monthly basis, and the public would be able to access the information through the Commission’s EDGAR system. In addition, proposed Rule 6b-1 would require exchanges that have volume-based transaction pricing for member proprietary orders in NMS stocks to have anti-evasion measures, including rules requiring members to engage in practices that facilitate the exchange’s ability to comply with the prohibition on volume-based exchange transaction pricing for agency-related orders in NMS stocks and to have written policies and procedures reasonably designed to detect and deter members from receiving volume-based pricing in connection with the execution of agency-related orders in NMS stocks. The proposing release will be published in the Federal Register. The public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register.
OCR text (2,630c · html-text · 99% conf)
The Securities and Exchange Commission today proposed a new rule that would prohibit national securities exchanges from offering volume-based transaction pricing in connection with the execution of agency or riskless principal (“agency-related”) orders in NMS stocks. The proposal also would require national securities exchanges to have certain anti-evasion rules and written policies and procedures and disclose certain information if they offer volume-based transaction pricing for member proprietary volume in NMS stocks. “Currently, the playing field upon which broker-dealers compete is unlevel,” said SEC Chair Gary Gensler. “Through volume-based transaction pricing, mid-sized and smaller broker-dealers effectively pay higher fees than larger brokers to trade on most exchanges. We have heard from a number of market participants that volume-based transaction pricing along with related market practices raise concerns about competition in the markets. I am pleased to support this proposal because it will elicit important public feedback on how the Commission can best promote competition amongst equity market participants.” Proposed Rule 6b-1 under the Securities Exchange Act of 1934 would prohibit national securities exchanges from offering volume-based transaction pricing in connection with the execution of agency-related orders in NMS stocks. It also would require exchanges that offer volume-based transaction pricing in connection with the execution of members’ proprietary orders in NMS stocks to disclose certain information, including the number of members that qualify for each transaction pricing tier that the exchange offers. Exchanges would be required to submit this information to the Commission on a monthly basis, and the public would be able to access the information through the Commission’s EDGAR system. In addition, proposed Rule 6b-1 would require exchanges that have volume-based transaction pricing for member proprietary orders in NMS stocks to have anti-evasion measures, including rules requiring members to engage in practices that facilitate the exchange’s ability to comply with the prohibition on volume-based exchange transaction pricing for agency-related orders in NMS stocks and to have written policies and procedures reasonably designed to detect and deter members from receiving volume-based pricing in connection with the execution of agency-related orders in NMS stocks. The proposing release will be published in the Federal Register. The public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register.