US SEC to review stock trading rules, could yield large shakeups

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US SEC to review stock trading rules, could yield large shakeups

On Friday, the 8th of March 2019, the US Securities and Exchange Commission (SEC) had issued a statement saying that the SEC would soon be launching a review of the fundamental set of rules controlling stock trading on the United States, triggering possibilities of the largest changes in stock trading in a decade and a half.

According to the statement, the possible changes would be targeted to make illiquid stocks trading easier. Besides, SEC would also likely to look into improving the quality and speed of public data feeds required for stocks trading.

Apart from that, the SEC’s special consideration would be making more trading information available to the investors. In 2005, the SEC had adopted a broad framework termed as the National Market System, which was most inclined to make sure that the retail investors were receiving the best price possible and the framework also prevented trade executions at such prices, which were inferior to offers and bids being displayed on other trading platforms.

Since then, the stock trading had space-dived in terms of technological advancement and proffered a much bigger focus on high-speed trading, where the availability of critical data at a proper time became an utmost priority.

Citing more challenging issues ahead of SEC, the US Securities and Stock Commission Chair, Jay Clayton said, “It is clear that the market challenges we faced in the early 2000s are not the same as the issues that we confront over a decade later”.