NYSE, Nasdaq Volume Discounts for Brokers Threatened by SEC

Agency on Wednesday proposes banning volume-based price deals
Move is latest by regulator to delve into equity trade rules

WATCH: SEC Chair Gensler says regulators are still weighing proposals for Bitcoin ETFs. He also talks about banning so-called volume-based transaction pricing and possible new rules around climate-related disclosures.Source: Bloomberg

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By Lydia Beyoud and Katherine Doherty

October 18, 2023 at 2:01 PM UTC

Updated on

October 18, 2023 at 7:19 PM UTC

This article is for subscribers only.

The New York Stock Exchange and Nasdaq would no longer be able to offer a kind of special discount that rewards Wall Street brokerages for routing large amounts of trade orders to them under a new plan from the Securities and Exchange Commission.

The SEC on Wednesday proposed banning so-called volume-based transaction pricing. The arrangements involve charging reduced fees or offering rebates to brokerages specifically based on how many stock trades they send each month on behalf of clients.