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Trading Rebates Skew Markets, NYSE and Allies Tell SEC

The New York Stock Exchange and a group of money managers are lobbying U.S. securities regulators to abolish the practice of paying rebates to large brokers to attract trades to stock exchanges and other trading platforms, according to three people familiar with the matter.

Jeff Sprecher, chief executive officer of NYSE owner IntercontinentalExchange Group Inc. and vocal critic of the rebate system known as “maker-taker,” was among a group of about 15 industry executives who met with members of the Securities and Exchange Commission earlier this month, said the people, who asked not to be named because the meetings were private. The group asked commissioners to conduct a pilot program to test whether stocks would trade differently without the incentives.