SEC Considers Repealing Order Protection Rule
The U.S. Securities and Exchange Commission has unveiled a proposal to rescind the long-standing Order Protection Rule, a cornerstone of Regulation NMS. The regulation, which mandates that brokers route orders to the exchange displaying the best available price, has faced criticism for contributing to market fragmentation. If implemented, this shift would mark a significant transition in equity market structure, potentially reshaping how high-frequency trading firms and retail brokers execute client orders in an increasingly competitive electronic landscape.