U.S. Brokers Face Big Rise in Exchange Fees Thanks to SEC Ruling
This article is for subscribers only.
Wall Street brokers are facing a big jump in the fees they pay to stock exchanges for trading data -- and have the U.S. Securities and Exchange Commission to blame for it.
In a little-noticed letter issued last week, the SEC said brokers can’t rely on snapshots provided by a single exchange when quoting equity prices to clients. Instead, brokers have to scan the entire market for the best prices, which would require them to fork over millions more to exchanges that sell market data.