RBC Urges SEC to Test Overhaul of Exchange Business Model
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The practice among stock exchanges of paying rebates to some traders puts long-term investors at a disadvantage and the Securities and Exchange Commission should consider eliminating the system, RBC Capital Markets said.
The SEC should consider an alternative to the “maker-taker” business model and require trading venues to offer rebate-free pricing structures, Richard Steiner, the New York-based global equities liaison to regulatory and government affairs at RBC Capital Markets, wrote in a comment letter to the SEC. RBC Capital Markets is a unit of the Royal Bank of Canada, which has its headquarters in Toronto.