SEC Requests Comments On Transaction Fee Pilot For NMS Stocks

The SEC is seeking comments on a proposed new rule that would establish a pilot program to study the effects that transaction-based fees and rebates in certain National Market System ("NMS") stocks may have on order-routing behavior, execution quality, and market quality generally.

The proposed new rule, Regulation NMS Rule 610T, provides for a pilot program that would establish a control group of NMS stocks subject to the current fee cap in Regulation NMS Rule 610(c) (i.e., the $0.003 fee cap for removing displayed liquidity for stocks priced at or above $1.00) and three test groups:

• Test Group 1: $0.0015 fee cap for removing and providing displayed liquidity (no cap on rebates);