Wall Street and individual investors are vehemently criticizing a Securities and Exchange Commission (SEC) proposal aimed at eliminating the long-standing best-price rule. This decades-old protection, designed to ensure investors receive the most favorable execution price for their orders, is now under threat, sparking widespread alarm and accusations that the SEC is prioritizing market structure changes over safeguarding individual investors. The potential repeal, critics argue, could lead to increased costs for retail traders and erode confidence in market fairness, as it removes a critical safeguard against potentially inferior trade executions and opens the door for greater fragmentation and complexity in how orders are handled.
Adapted from: WSJ.com: Markets
