ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, August 29, 1996 TAG: 9608290047
SECTION: BUSINESS PAGE: B6 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: ASSOCIATED PRESS
The Securities and Exchange Commission on Wednesday adopted dramatic changes aimed at improving competition and fair handling of investor orders on the Nasdaq Stock Market.
By a 4-0 vote, the Wall Street watchdog agency approved the most ambitious step in the government's crackdown on the computerized stock market.
The new rules allow certain customer orders to buy or sell stock to mingle directly with dealers' quotes. And they would require dealers to give customers the better prices quoted in separate electronic trading systems that piggyback on Nasdaq, such as the Instinet Corp. system, owned by Reuters.
``These rules are intended to empower all investors, by allowing their orders to compete on a level playing field and by providing disclosure they need to make an informed decision,'' SEC Chairman Arthur Levitt Jr. told a large audience at an open meeting.
Not since the late 1970s has the SEC adopted a set of reforms that so significantly alter trading practices in the nation's securities markets, agency officials said.
By improving competition in this fashion, the rules stand to save investors money by reducing transaction costs and preventing a form of price fixing uncovered in separate SEC and Justice Department investigations this summer.
LENGTH: Short : 34 linesby CNB