Sun. Jul 6th, 2025

The U.S. Securities and Exchange Commission is weighing a requirement that brokers tell investors exactly where their stock trades go to be executed, a proposal that may address complaints that the decisions are sometimes made against the client’s best interests.

The proposal could give investors more insight into whether they are getting the best price when they buy and sell large numbers of shares, according to three people familiar with the matter. Brokers entrusted with orders in the U.S. stock market can choose from dozens of exchanges and private venues. Some money managers such as T. Rowe Price Group Inc. (TROW) have told regulators that incentives offered by exchanges for attracting orders can put a broker’s financial interest at odds with the customer’s.

The SEC faces pressure to overhaul trading after Michael Lewis’s “Flash Boys” book made the claim that high-frequency traders hurt other investors by learning which shares investors plan to buy, purchasing them and selling them back at a higher price. The SEC has said it’s reviewing every aspect of how stocks are traded, and regulators are trying to identify changes that could be implemented quickly, the people said.

“We’ve actually started this conversation about what can we do right now,” SEC Commissioner Kara M. Stein said in an interview. “All five commissioners are very focused on these issues and are committed to making sure the market is fair and efficient and promoting capital formation.”

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