Trading

Stock exchanges to test trading without rebates

Pilot programme designed to test ‘maker-taker’ system, which some say is rife with potential conflicts of interest

Securities regulators on Wednesday put in motion the biggest stock-market experiment in more than a decade: a pilot programme trading stocks with lower fees and rebates.

The Securities and Exchange Commission unanimously approved the one-year programme as part of a review of the “maker-taker” trading system, which offers rebates to traders whose price quotes supply the exchange with liquidity, and charge others who “take” those orders by trading with them.

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