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SEC Weighs Sending Retail Stock Orders to Auctions for Execution

  • Plan under consideration could impact major trading firms
  • Agency has been reviewing rules underpinning stock market

The US Securities and Exchange Commission is weighing changes to stock-market rules that could force trading firms to directly compete to execute trades from retail investors, according to people familiar with the matter.

A move by the SEC to press major wholesale brokerages to win auctions for orders by mom-and-pop investors would be a major change for the stock market. While nothing has been announced, the change is among those being considered by staff at Wall Street’s main regulator, said the people who asked not to be named discussing the plans which remain private.