SEC Pursuing Broad Review of Stock-Market Structure, Chairman Says

‘The question is whether our equity markets are as efficient as they could be,’ said SEC Chairman Gary Gensler, seen on Monday.



Photo:

The Wall Street Journal

The Securities and Exchange Commission is considering changing rules that govern how U.S. stocks are traded, including pricing incentives that exchanges and brokers use to attract orders, Chairman

Gary Gensler

said Wednesday.

Speaking to an industry conference, Mr. Gensler outlined a broader examination of market structure than he has previously described. Mr. Gensler, who took over the SEC in April, has previously questioned the system that results in many individual investors’ orders being routed to large broker-dealers known as wholesalers, such as Citadel Securities and

Virtu Financial Inc.,

instead of going to public exchanges.

“The question is whether our equity markets are as efficient as they could be, in light of the technological changes and recent developments,” Mr. Gensler told the Piper Sandler Global Exchange and FinTech conference.

SEC Chairman Gary Gensler said he was seeking to revise rules for controversial 10b5-1 plans at WSJ’s CFO Network Event. Corporate insiders use the plans to avoid insider-trading claims when buying or selling their own company’s stock.

Write to Dave Michaels at dave.michaels@wsj.com

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