SEC Vote on Plan to Scrap Trade-Through Ban Set for Next Week

A full repeal of the so-called trade-through rule is included in a forthcoming proposal from the Securities and Exchange Commission, a top agency official said.

“It’s genuinely on the table,” SEC Trading and Markets Division Director Jamie Selway said Thursday in response to an audience question about whether the agency might totally scrap the 20-year-old measure. Selway spoke at the Piper Sandler Global Exchange & Fintech Conference in New York.

The rule prohibits exchanges, alternative trading systems and wholesalers like Citadel Securities or Virtu Financial Inc. from executing trades that ignore or “trade through” the national best bid or ...