SEC to Push Bond and Option Brokers for Better Prices on Trades
- Key part of looming stock plan may also apply to fixed income
- Agency wants ‘best execution’ rule for more kinds of trades
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The US Securities and Exchange Commission’s draft plans to overhaul rules for the stock market would also expand its oversight of bond and options trading.
A proposal being circulated inside Wall Street’s main regulator would require that brokers in fixed-income and some derivatives -- as well as those handling equities -- get their clients the best deal, according to people familiar with the matter. Brokerages already face a similar “best execution” rule from the industry-backed Financial Industry Regulatory Authority, but a regulation directly from the SEC could lead to tougher enforcement.