New SEC Data Rule Will Harm Main Street Investors
‘NMS II’ is a regulatory expansion that will add fragility and complexity to the market system.
A pedestrian passes in front of the Nasdaq MarketSite in New York, Dec. 21, 2020.
Photo:
Michael Nagle/Bloomberg News
Jan. 3, 2021 10:55 am ET
The Dec. 22 editorial “Fighting a Stock Exchange Shakedown” in support of a new Securities and Exchange Commission rule diverges from the editorial board’s usual defense of free markets and deregulation. The SEC’s proposed market structure changes—dubbed NMS II—is a regulatory expansion that will add fragility and complexity to the market system, potentially harming Main Street investors and serving a narrow agenda of influential financial players. It limits choice for clients on depth-of-book data not typically used by individual investors. The exchanges have been among the strongest pillars of our financial system, and this year they weathered unprecedented volatility while providing price transparency for a multitude of new Main Street investors and hosting a record number of initial public offerings.