Plans to revamp stock trading rules split SEC

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Deep divisions surfaced within the Securities and Exchange Commission on Wednesday over whether to proceed with controversial proposals to overhaul rules on stock trading.

William Donaldson, SEC chairman, made a passionate defence of the proposals, but his fellow Republican commissioners claimed the shake-up could badly damage competition, efficiency and innovation on US markets.
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Paul Atkins, the Republican commissioner who voted against publication because he did not support the proposals, claimed they could kill off plans by the New York Stock Exchange to combine its traditional floor-based auction process with greater use of electronic trading.

He also accused Mr Donaldson and SEC staff of reaching a decision on the proposals ahead of the public consultation, which will last 30 days.

The proposals would be the biggest reform of stock trading rules for 30 years. They attempt to ensure that an investor who buys or sells stock secures the best available price for the order on the markets.

But they raise the prospect of a sweeping revision and expansion of the much-criticised "trade through rule", which requires the market that initially receives an investor's order to find the best price, whether it is on its own system or elsewhere.
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1. Tsk. How dare they try to protect investors?

You don't expect all these brokers to pay for their places in
Connecticut with upfront fees, do you?