Wall Street regulator proposes to scrap 'order protection rule'

WASHINGTON, June 11 (Reuters) - The ‌U.S. Securities and ​Exchange ​Commission on Thursday unanimously proposed to scrap longstanding Wall Street regulations requiring the execution of stock trades at ‌the best available price, saying the rules drove up costs ⁠and complexity and were no longer necessary.

• The proposal, if adopted, would mark ‌another step in the Trump ‌administration's plans to remake the structure of securities markets.

• "I've opposed the trade-through rule since its inception and have elaborated on my concerns ​from this very stage," SEC Chair Paul Atkins said at a public meeting of the five-member bipartisan commission, which currently has ⁠only three Republican members and no Democrats.

• Atkins had voted against the proposal while serving ​as a commissioner in 2005.

• Also known as the "order protection rule," the regulation was first adopted in 2005 ​to prohibit so-called trade-throughs, which occur ‌when a trade happens at a bid or offering price that is worse than what is quoted ⁠on another venue.

• At Thursday's meeting, officials said technological advances and changes in US market structure meant the rule was now doing more harm than ⁠good, driving up costs for compliance and connectivity and making markets more complex ​while delivering little benefit.

• Other regulations requiring price transparency from broker-dealers and trading venues remain in place, officials said.

• Better Markets, which pushes for tougher oversight ‌of Wall Street, said in a statement that rescinding the rule outright would bring "worse prices for people ‌saving for retirement and more profits for securities firms and high-frequency ⁠traders."

• The proposal is subject ‌to a 60-day public ​comment period prior to any decision on finalization.

(Reporting by Douglas Gillison in Washington; Editing by Chizu Nomiyama and ‌Nick Zieminski)

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