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US markets watchdog plans biggest overhaul of stock trading in nearly 20 years

The most immediately contentious of the regulator’s proposed rules is a new auction mechanism that would force brokers to offer retail investor orders to a wider group of trading venues if they are less than $200,000. Another proposal, on so-called best execution, would require brokers to document exactly how they had looked at venues to ensure they received the best price for their customers.

“I believe a best execution standard is too important, too central to the SEC’s mandate to protect investors, not to have on the books as commission rule text,” said Gensler, a Democrat nominated by President Joe Biden.

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regulation, capital markets