Voting on Wednesday, the US Securities and Exchange Commission narrowly approved a 'trade-through rule' requiring brokers to obtain the best possible price for customer orders, even if this means sacrificing the faster execution which might be provided by another market.
The 3-2 vote saw the Commission's Democrats, Harvey Goldschmid and Roel Campos siding with Chairman William Donaldson. The three men argued that implementing the rule would save investors in the region of $321 million per year.
However, critics including Republican Commissioners, Paul Atkins and Cynthia Glassman countered that the Regulation National Market System (Reg NMS) is anti-competitive, and that the estimated investor savings constitute "a rounding error".
According to reports, Republican opponents of the move in Congress have raised the possibility of a legal challenge.
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