SEC Proposes Stock Transaction Fee Pilot Program

By Andrew Ramonas

An SEC pilot program to lessen the fees traders pay for stock exchange access moved one step closer to fruition.

The Securities and Exchange Commission’s five members voted unanimously March 14 to propose a study of transaction fee changes, including modifications to the “maker-taker” model. Under the model, exchanges charge traders taking liquidity and provide access fee rebates to market makers giving it. Critics of the model claim brokers can direct orders to certain exchanges to capitalize on rebates and ignore the best prices or executions for clients.

Fees under the model usually are 30 cents per ...