SEC Proposes Sweeping Changes for Stock Trading

SEC Proposes Sweeping Changes for Stock Trading

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

Gary Gensler aims to enhance competition in the stock market by leveling the playing field for new entrants. This involves challenging the dominance of wholesalers and introducing an auction model for order processing. The changes face resistance from established firms, who argue the current system benefits all investors. The auction model will require exchanges to meet specific criteria, potentially altering business models.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main issue Gary Gensler is trying to address in the stock trading market?

Increasing the number of wholesalers

Eliminating all forms of competition

Reducing the number of retail investors

Leveling the playing field for new entrants

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are some firms resistant to the proposed changes in the stock trading market?

They support the changes but want more time

They want to eliminate retail investors

They argue the current system benefits all investors

They believe the changes will increase their profits

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What historical regulation is mentioned as a benchmark for the current system?

Sarbanes-Oxley Act

Reg NMS in 2005

Dodd-Frank Act

Glass-Steagall Act

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key feature of the new auction model for processing orders?

It requires exchanges to meet specific criteria

It allows wholesalers to bypass the auction

It eliminates the need for displaying quotes

It applies to all order sizes without exception

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might some trading systems need to do to comply with the new auction model?

Change their business models

Stop displaying quotes

Reduce the number of auctions

Increase their trading volume