CBOE - These 3 Stock Exchanges Stand to Benefit From SEC Trading Reforms
The Securities and Exchange Commission's recently proposed rules could be the most significant market overhaul in more than a decade. The commission's focus is on the hotly debated practice of payment for order flow, where brokers like Robinhood sell their customer orders to market makers, who then execute those orders.
New rules could stifle business for market-making firms like Virtu Financial and Citadel securities. On the flip side, three trading exchanges that could benefit from these new proposed rules are Intercontinental Exchange (NYSE: ICE) , Nasdaq (NASDAQ: NDAQ) , and Cboe Global Markets (NYSEMKT: CBOE) . What are the proposed rules, and how can exchanges benefit? Read on to find out.
The SEC occasionally modifies its rules to protect investors and maintain fair, orderly, and efficient markets. One practice the commission has set its sights on is payment for order flow (PFOF). PFOF has been around for decades, but it wasn't until the last few years that it's come under intense scrutiny from regulators and market participants.
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These 3 Stock Exchanges Stand to Benefit From SEC Trading Reforms