Citadel Urges SEC to Reconsider 2005 Best-Price Rule Scrap as $250,000-a-Day Savings Face Scrutiny
Updated
Updated · WTVB · Aug 17
Citadel Urges SEC to Reconsider 2005 Best-Price Rule Scrap as $250,000-a-Day Savings Face Scrutiny
3 articles · Updated · WTVB · Aug 17
Summary
Citadel Securities told the SEC its June plan to scrap the order protection rule would be a major overhaul of U.S. equity markets and should be reconsidered.
In a letter, the market maker called the SEC’s economic analysis “fatally flawed,” saying projected compliance savings of about $250,000 per trading day are too small to justify the risks.
Citadel said removing the 2005 best-price rule would let brokers bypass better displayed exchange quotes, push more orders to internalizers and alternative venues, and weaken price discovery and liquidity.
The firm also warned the change could advantage tokenized-equity platforms, which could execute trades without matching better prices elsewhere, exposing investors to weaker protections.
The proposal, advanced unanimously in June by Paul Atkins’ SEC, would mark another Trump-era step to reshape securities-market structure.