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 un