Rule Fragmenting Trading Worth Review, Gallagher Says
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U.S. regulators should reconsider the 2007 rule change that helped disperse stock trading among more than 50 different platforms and caused complexity that critics say increased malfunctions, Securities and Exchange Commissioner Daniel Gallagher said.
The SEC’s Regulation NMS, named for National Market System, mandates that U.S. stocks must trade on the venue that has the best price at any time, helping private trading platforms and upstart exchanges take business from the incumbent public markets, NYSE Euronext and Nasdaq OMX Group Inc.