Controversial 'Maker Taker Model' Tearing Wall Street Apart
The SEC is supporting an examination of the maker taker stock trading model, where certain stock exchanges compensate market making firms and other firms for executing stock orders on their venues.
A new-pilot program approved by the agency on Wednesday will test the efficacy of the maker taker model.
Opponents of the system say it harms investors because traders end up executing trades on the exchange that gives the biggest rebate, as opposed to where that trade would be best executed..
Recent related videos
Wochit News - ▶ 00:39