The NYSE supports most of the SEC's market structure proposals but calls on the commission to preserve the trade-through rule, according to a comment letter New York Stock Exchange officials sent to the SEC on Wednesday. The current trade-through rule, also known as a price-protection rule, directs order flow to the market with the best posted price. The SEC has proposed a modified trade-through rule with a provision that would allow investors to opt out of compliance.
Separately, the Securities Industry Association also sent the SEC a comment letter on Wednesday, calling on the commission to adopt price-protection guidelines that would provide "firm and accessible" stock quotes for all investors.
"We support and believe strongly in the idea of price protection understanding that there has to be some flexibility in how protection is implemented," SIA Executive Vice President Donald Kittell told reporters on a conference call discussing the organization's comment letter.
The Investment Company Institute also sent the SEC a comment letter on Wednesday, supporting a uniform trade-through rule for all market centers. "The trade-through proposal goes to the heart of what institute members have been advocating for years, protection for limit orders placed in the securities markets," Ari Burstein, ICI associate counsel, said in the letter.
