Markets overhaul proposal by SEC stirs up industry (CNBC)

Seeking to increase transparency and fairness in the equity markets, the SEC and its Chairman Gary Gensler have proposed some of the largest changes in recent history to the markets’ structure and operation. A key SEC objective of its proposal is to increase competition for market orders by individuals through an auction system. But, there have been concerns about upending the current system, primarily voiced by firms such as wholesalers and retail brokers that benefit from the compensation they receive. Amy Lynch, FrontLine’s Founder and President, comments that the historical dilemma of proving best execution may be clarified under the proposed changes by creating a measurable and standardized way for best execution to occur under new regulations. Ms. Lynch adds that a downside of the proposal for firms is the burden of additional reporting and documentation necessary to demonstrate compliance with the new policies and procedures that would be required. See CNBC (subscription required), “SEC Chair Gary Gensler tees up changes to how the stock market operates”