NYSE, Nasdaq Volume Discounts for Brokers Threatened by SEC (2)

The New York Stock Exchange and Nasdaq would no longer be able to offer a kind of special discount that rewards Wall Street brokerages for routing large amounts of trade orders to them under a new plan from the Securities and Exchange Commission.

The SEC on Wednesday proposed banning so-called volume-based transaction pricing. The arrangements involve charging reduced fees or offering rebates to brokerages specifically based on how many stock trades they send each month on behalf of clients.

This tiered setup can result in larger trading firms offering customers better transaction prices than smaller ones, SEC Chair Gary ...