Thread by @DatabentoHQ

The SEC's latest proposals announced this week will bring the biggest changes to US stock market microstructure of this decade. Here's why. ⬇️

1️⃣ 📢 SEC Proposes Amendments to Enhance Disclosure of Order Execution Information (sec.gov/news/press-rel…)

☝️ The proposed amendments [...] would require the reporting of execution quality information for fractional share orders, odd-lot orders, and larger-sized orders.

2️⃣ 📢 SEC Proposes Rule to Enhance Competition for Individual Investor Order Execution (sec.gov/news/press-rel…)

☝️ [...] the proposed rule [...] would prohibit a “restricted competition trading center” such as a wholesaler from internally executing 'segmented orders' [...] unless the orders are first exposed to competition in [an auction] operated by an “open competition trading center.”

3️⃣ 📢 SEC Proposes Rules to Amend Minimum Pricing Increments and Access Fee Caps and to Enhance the Transparency of Better Priced Orders (sec.gov/news/press-rel…)

☝️ This will allow exchanges to display sub-penny prices and compete more with wholesalers.

@databento advocates for fairer, more transparent markets, and largely supports these proposed changes.

#trading #SEC #regulation #finance #stocks #markets #investing