Gensler said last year he wanted to save investors money by toughening regulations around profits made in the financial industry.
Brokers profit when investors trade,” Gensler said at the time. “For those brokers who have these arrangements — and not all do — higher trading volume generates more payment-for-order flow.”
“What makes the current zero-commission brokerage environment different is that investors do not see their costs as they’re executing trades, so they may perceive them as free.”
The SEC is also considering other potential reforms, reports said. This includes adjusting the display prices and trading data on stock exchanges, so that venues such as the Nasdaq or the New York Stock Exchange can better compete with wholesalers.
