The Securities and Exchange Commission is exploring an overhaul of US stock market rules to strengthen competition and ensure individual investors are fairly treated after the explosion in retail trading during the coronavirus pandemic.
The regulator has been reviewing equity market structure since last year, when chair Gary Gensler said the meme-stock frenzy — when traders organised online to drive up shares of a handful of companies — had highlighted “inefficiencies” in the market.
Gensler has settled on several potential proposals, according to two people familiar with the matter, including the creation of an auction system designed to increase competition around services to retail investors.