Key facts
- The SEC proposed to eliminate the 'order protection rule' for stock trades.
- The rule requires trades to be executed at the best available price.
- SEC Chair Paul Atkins cited increased costs and complexity as reasons for the proposal.
- Atkins has previously expressed concerns about the rule since its inception.
The U.S. Securities and Exchange Commission (SEC) has proposed to eliminate the longstanding 'order protection rule,' which mandates that stock trades be executed at the best available price. The commission voted unanimously to propose the change, with SEC Chair Paul Atkins stating that the rule's associated costs and complexity were no longer justified.
Atkins expressed his long-held opposition to the 'trade-through' rule, as it is also known, during a public meeting of the five-member commission. The proposal will now undergo a public notice and comment period before any final decision is made.
In a separate development, the SEC also proposed to do away with dormant regulations adopted under former President Joe Biden that required companies to disclose climate-related risks and spending. SEC officials stated that the agency now believes such rules are outside its authority, impose substantial costs, and could discourage capital formation.