- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
- Boys out of critical condition after Zurich stabbings
- Spain logs record summer tourism as inflow draws protests
- Hedi Slimane quits as Celine's artistic director
- Oil prices extend rally on Iran attack
- Spain welcomed record number of tourists this summer
- France says coming tax hikes on the wealthy to be 'temporary'
- Why are Thailand's roads so deadly?
- Oracle to invest $6.5 bn in Malaysian cloud services region
- Parkrun marks 20 years of a free weekly jog, run... or walk
- Oil extends rally after Iran attack, Hong Kong soars again
- Prostitutes, prospectors drive spread in DR Congo mpox capital
- Oil extends rally after Iran attack, Hong Kong resumes surge
- Extreme heat another form of death sentence in Texas jails
- Can music help plants grow? Study suggests sound boosts fungus
- Nike earnings drop, says turnaround will take time
- US dockworkers launch mass strike a month before election
- Iron Dome: Israel's key anti-missile shield
- Cranes stand still as US dockworkers fight for 'future'
- GM reports US sales dip, but says EVs grew
- Sheinbaum takes office as Mexico's first woman president
- Webb telescope detects carbon dioxide on Pluto's largest moon
- Stock markets slump, oil jumps on Middle East concerns
- French PM vows more taxes and spending cuts ahead of budget fight
- Germany inaugurates IBM's first European quantum data centre
- Stock markets diverge as eurozone inflation drops further
- France's richest man takes control of Paris Match magazine
- Anger meets tear gas as Nigeria hardship protests fizzle out
- US dockworkers launch mass strike month before election
- Evacuations from Lebanon: what we know
- Feathers fly at Chanel's Paris fashion return
- UAE oil giant ADNOC swoops on German chemicals firm Covestro
- Eurozone inflation falls under 2% for first time since 2021
- Coldplay ticket scalping fiasco sparks backlash in India
- Droughts drive Spanish boom in pistachio farming
- Tokyo recovers some losses to lead Asian markets higher
- Rural schools empty in North Macedonia due to exodus
- US dockworkers launch strike after labor contract expires
- Thousands evacuated as Super Typhoon Krathon approaches Taiwan
- Kenya airport whistleblower fears for his life
- Sheinbaum to take office as Mexico's first woman president
- Scientists fear underfunded Argentina research on verge of collapse
- US port officials gird for strike despite last-minute bargaining
- With 118 dead from Hurricane Helene, Biden defends US government response
- Breeder who tried to create enormous trophy sheep jailed in US
- Qatar Airways seeking 25% stake in Virgin Australia
RYCEF | 1.42% | 7.03 | $ | |
RBGPF | -2.18% | 59.5 | $ | |
CMSC | -0.04% | 24.76 | $ | |
SCS | -1.97% | 12.945 | $ | |
RELX | 0% | 47.34 | $ | |
RIO | 0.01% | 71.17 | $ | |
BCC | -0.32% | 140.94 | $ | |
NGG | -1.64% | 68.92 | $ | |
CMSD | -0.1% | 24.915 | $ | |
VOD | -2.26% | 9.73 | $ | |
JRI | -0.3% | 13.49 | $ | |
GSK | -2.04% | 39.495 | $ | |
AZN | 0.84% | 79.335 | $ | |
BCE | -1.28% | 34.39 | $ | |
BP | 0.36% | 32.205 | $ | |
BTI | -1.46% | 35.925 | $ |
US regulator favors revamp of stock market trading system
Citing equity market trading defects revealed in last year's GameStop saga, a top US securities regulator on Wednesday endorsed a broad revamp of the stock market trading system.
In a speech billed as a first step towards a possible update in the rules likely to rile financial firms, Gary Gensler, chair of the Securities and Exchange Commission, said he favored restructuring the system in order to better protect retail investors.
"It's not clear... that our current national market system is as fair and competitive as possible for investors," Gensler said in a virtual address at a conference hosted by Piper Sandler.
The speech marks the SEC's latest action in response to frenzied trading in early 2021 during which extreme volatility in GameStop, AMC Entertainment and a handful of other equities rocked the market and led brokerages to implement sudden trading restrictions that angered investors and spurred congressional probes.
Gensler said the current system routes "the vast majority" of stock trades orders to electronic trading wholesalers such as Citadel Securities and Virtu Financial.
In some cases, these firms pay the brokerages, an arrangement known as "payment for order flow" that can allow brokerages such as Robinhood Markets to offer commission-free trades to individual investors.
But Gensler is skeptical that this arrangement protects retail investors and believes the payment for order flow system creates conflicts of interests and encourages "gamification" on online platforms to increase trading volumes.
Gensler has asked SEC staff to consider steps to "enhance order-by-order competition," potentially through auctions. He has also asked staff for recommendations to mitigate the risks with payment for order flow and to provide more transparency.
The SEC head described the speech as a starting point towards possible regulation that will include extensive public comment and discussion with other SEC commissioners.
Doug Cifu, chief executive of Virtu, disputed Gensler's characterizations, telling CNBC that most of the broker dealers with which his firm trades do not accept payment for order flow.
"The chair with all due respect is conflating the issue of payment for order flow with the ecosystem that has evolved in this country for retail trading, which has really enabled retail investors to have instantaneous execution and essentially zero commission on 8000 listed names," Cifu said.
"You know, the cliche that markets have never been better is actually factually correct."
P.Kolisnyk--CPN