Robinhood is backing a push to scrap SEC Rule 611, a little-known rule meant to stop the market from skipping the best stock price investors can actually see.
The fight sounds technical. But it comes down to something basic. When the market shows a better stock price, should that price have to be respected?
The rule is SEC Rule 611, also known as the order-protection rule. The Securities and Exchange Commission has proposed rescinding it, and Robinhood (HOOD) is backing the move.
The debate has pulled in retail brokers, exchanges, market makers, Wall Street trade groups, and firms eyeing tokenized stocks.
The SEC says the rule applies to hundreds of trading centers, from public stock exchanges to firms that execute trades away from those exchanges.
The fight sounds technical. But it comes down to something basic. When the market shows a better stock price, should that price have to be respected?
The rule is SEC Rule 611, also known as the order-protection rule. The Securities and Exchange Commission has proposed rescinding it, and Robinhood (HOOD) is backing the move.
The debate has pulled in retail brokers, exchanges, market makers, Wall Street trade groups, and firms eyeing tokenized stocks.
The SEC says the rule applies to hundreds of trading centers, from public stock exchanges to firms that execute trades away from those exchanges.
1 month ago
