Mar. 5, 2023
The proposed amendment to the regulation governing the NMS by the Securities and Exchange Commission appears to be a step towards promoting fair competition and ensuring that individual investors' interests are protected. By prohibiting restricted competition trading centers from executing certain orders of individual investors without first exposing them to compete at that price in a qualified auction operated by an open competition trading center, the proposed rule aims to prevent any unfair advantages and promote transparency in the trading process. The limited exceptions to the prohibition suggest that the Commission is taking a careful and nuanced approach to the issue, considering the potential impact on market stability and efficiency. Overall, this proposed rule could have significant implications for the securities market and individual investors. If implemented effectively, it has the potential to promote a more level playing field for all participants, which could ultimately lead to greater confidence in the market and increased participation. However, it remains to be seen how the proposed rule will be received by various stakeholders, and whether any unintended consequences or negative impacts will arise. Therefore, it will be important to monitor the progress of this proposed rule and any potential revisions or amendments that may be made in response to feedback from the industry and investors.