The Securities and Exchange Commission is considering a new proposal that would require brokers to tell their investors exactly where their stock trades are executed, Bloomberg reports.
According to Reuters, this new requirement would give investors more insight into whether brokers are working in the client’s interest to get the best prices for the buy and sell orders they entrust to them. Brokers are able to choose from dozens of stock exchanges and private venues, and some money managers have indicated to regulators that incentives offered by exchanges to try to attract orders can mean that a broker’s financial interest is at odds with the client’s, Bloomberg reports.
