April 19 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 Saturday.
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."
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