Brokers’ Order-Router Role Needs Review, SEC’s Stein Says
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Investors should be given more information about where brokers send a stock order to be filled and whether that decision yielded the best price, a member of the U.S. Securities and Exchange Commission said today.
Additional disclosure would help investors know whether their broker is serving their best interest or routing orders to avoid fees or capture rebates, Commissioner Kara M. Stein said at a Washington conference sponsored by the Council of Institutional Investors. The SEC is weighing such a plan as part of a review of how stocks are traded, according to three people familiar with the matter.