weighs requiring brokers to identify where trades made: Bloomberg
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[April 21, 2014]
(Reuters) — The U.S. Securities and Exchange Commission is weighing
a proposal that would require brokers to tell investors exactly
where their stock trades are executed, Bloomberg reported on
The proposed requirement would give investors more clarity on
whether they were getting the best prices for the buy and sell
orders they entrust to brokers, who can choose from dozens of stock
exchanges and private venues, the report said, citing three people
familiar with the matter.
The SEC, which is the regulator in charge of analyzing the stock
market's structure, is reviewing all aspects of how stocks are
traded and seeking to identify changes that could quickly be
implemented, the report said.
An SEC spokesman could not be reached on Saturday.
So-called high-frequency trading has faced fresh scrutiny by
securities regulators in the wake of Michael Lewis' book "Flash
Boys," which alleges markets are rigged in favor of tech-savvy
"We've actually started this conversation about what can we do right
now," SEC Commissioner Kara Stein said in an interview with
Bloomberg. "All five commissioners are very focused on these issues
and are committed to making sure the market is fair and efficient
and promoting capital formation."
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Requiring brokers to report every step in their orders could shed
light on whether they were paying a fee or capturing a rebate by
directing business to an exchange.
(Reporting by Michael Hirtzer in Chicago;
editing by Peter Cooney)
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