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Article: The Thirty Years War: RegNMS is only the latest development in the ongoing battle over securities market structure.(Securities and Exchange Commission)
- Article from:
- Regulation
- Article date:
- June 22, 2005
- Author:
CopyrightCOPYRIGHT 2005 Cato Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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THE SECURITIES AND EXCHANGE COMmission recently fought the latest battle in the Thirty Years War over the structure of American securities markets. In December 2004, amidst much fanfare and controversy, and after much anticipation, the agency re-proposed new rules under Regulation NMS. In early April, despite congressional and industry opposition, a divided commission (with Chairman William Donaldson voting with the two Democratic commissioners) approved the new rule. Within days of its adoption, the regulation had already affected the structure of American securities markets.
The centerpiece of the proposal is a "trade-through rule" (formally titled the "Order ...