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Trading Rebates on Exchanges Should End, ICE’s Sprecher Says

The pricing system used by the majority of U.S. stock exchanges should be banned because it encourages trading aimed only at collecting rebates, according to Jeffrey Sprecher, chief executive officer and chairman of IntercontinentalExchange Inc.

Regulators shouldn’t let venues offer maker-taker pricing, in which an exchange charges some firms to trade and gives others rebates, Sprecher said today at a Futures Industry Association conference in Chicago. He said the pricing structure discourages some traders from owning stock.