 |
Sarbanes-Oxley News & Developments
U.S. Court Sides With SECA federal court ruling sided with the SEC in a dispute with a disgruntled electronic trading network, ECN.
> > Domestic Securities Inc., parent company of Attain ECN, sued the SEC last fall, claiming it did not provide adequate notice of how orders would be handled on SuperMontage. SuperMontage is the new Nasdaq trading system that fills orders at the best price available, or direct them to a particular market marker or electronic communications network.
A second issue raised by ECN faulted the SEC for approving a technologically deficient alternative to SuperMontage. The court denied the claim, saying the ADF is an alternative display facility not an alternative execution facility.
SEC market regulation division director Annette Nazareth applauded the court ruling while acknowledging it does not resolve access-fee complaints that prompted the lawsuit by ECN. Market participants have been frustrated by the long delay in addressing access-fee issues. One solution would fold access fees into quoted prices. Since fees typically are less than a penny a share, that would result in sub-penny stock pricing, which SEC regulators fear would create more confusion. Eliminating access fees, or setting them at low levels are other alternatives being considered.
SEC director Nazareth said SEC Chairman William Donaldson and other commissioners will tackle access fees as they consider broad market reforms.
Source: WSJ article
Published:2003-07-05
|
|
