Regulators should make the approval process for new stock-market order types more stringent to simplify trading and boost investor confidence, said David Lauer, a consultant at Better Markets Inc.
Approval for order types should be denied when there is no “clearly demonstrated utility” to long-term investors and market stability, he said today at a U.S. Senate Banking Committee hearing. Exchanges offer multiple order types so traders can tailor transactions based on price moves or other conditions. Some give users control over when and how they execute a trade request while others allow firms to keep their place in line for orders or avoid routing to other venues.
Read Whitney Kisling’s full article here