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Latest Business News

SEC Rules Level Exchange Playing Field

Sunday, March 04, 2007 6:24:04 PM
By JOE BEL BRUNO

NEW YORK (AP) - U.S. stock markets and the electronic trading platforms that compete with them enter a new era Monday as regulations take effect to level the playing field for all types of exchanges.

The regulations known as Reg NMS were implemented by the Securities and Exchange Commission to ensure that automated trades are routed to the exchange that offers an investor the best price. They're expected to trigger a surge in volume, and give more business to small, regional players around the country.

Reg NMS forces markets to be more competitive, and speedier. It comes as the Nasdaq Stock Market Inc., which has been using electronic trading since its infancy in the 1970s, has been taking market share away from the NYSE because of its ability to route trades quicker.


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