SEC Proposes Transaction Fee Pilot For NMS Stocks

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The SEC proposed Rule 610T of Regulation NMS to conduct a Transaction Fee Pilot in NMS stocks. The proposed pilot would subject stock exchange transaction fee pricing, including "maker-taker" fee-and-rebate pricing models, to new temporary pricing restrictions across three test groups, and require the exchanges to prepare and publicly post data. The proposed pilot includes a test group that would prohibit rebates and linked pricing, as well as test groups that would impose caps of $0.0015 and $0.0005 for removing or providing displayed liquidity, and would apply to all NMS stocks of any market capitalization and would include all equities exchanges, including "taker-maker" exchanges. The pilot would last for up to two years with an automatic sunset at one year unless extended.