The New York Stock Exchange on Monday joined retail brokerage Charles Schwab Corp and investment firm Citadel Securities in asking the Securities and Exchange Commission (SEC) to withdraw two proposals rules to reform the way stocks are traded. .
The move represents a coordinated industry reaction against potentially the most impactful proposals in the SEC’s biggest attempt to overhaul securities rules in nearly 20 years.
“We are deeply concerned that the Commission has released several far-reaching proposals simultaneously that would radically overhaul the current market structure without properly assessing the cumulative impact on the market or the potential for unintended consequences,” the companies said in a statement. a statement. dried up.
In December, the SEC proposed requiring nearly all retail securities orders to be auctioned, as well as a new rule allowing brokers to demonstrate they are getting the best possible executions for their clients’ orders. as well as trading increases and lower access fees. on exchanges and more robust information on the execution of retail orders.
The goal of the proposed rules is to improve market quality and efficiency, stimulate competition for retail securities orders and reduce unnecessary intermediation, SEC Chairman Gary Gensler said.
The New York Stock Exchange, along with Schwab and Citadel Securities, have asked the SEC to withdraw the auction and best execution proposals indefinitely, saying they could lead to lower market liquidity and create confusing regulatory overlap. .
“We believe this more focused approach will bring significant benefits to U.S. equity market participants, while significantly reducing the risk of negative outcomes for markets and investors, including the risk that companies will cease to be liquidity providers. , which would be particularly detrimental to the retail trade”. investors,” they noted.
The SEC did not immediately respond to a request for comment.