#USHouseMarketStructureDraft #USHouseMarketStructureDraft – Key Highlights

The U.S. House Financial Services Committee has released a draft proposal aimed at overhauling market structure in the U.S. equities landscape. The #USHouseMarketStructureDraft seeks to enhance transparency, improve order execution quality, and foster greater competition among trading venues. This initiative comes in response to ongoing concerns about retail order routing, payment for order flow (PFOF), and the dominance of a few key market makers.

Key provisions include stricter disclosure requirements for brokers regarding order routing practices, a potential ban or restriction on PFOF, and a greater push for routing retail trades to public exchanges rather than internalizers. The draft also supports innovations like auction-based execution mechanisms to ensure better price discovery for retail investors.

Supporters argue that the reforms will level the playing field and restore confidence in market fairness. However, critics caution that too much regulation could reduce liquidity or raise trading costs for smaller investors.

This draft marks a significant step in what could become one of the most meaningful equity market reforms in over a decade. As the proposal moves through Congress, stakeholders from exchanges, broker-dealers, and investor advocacy groups are preparing to weigh in heavily.

Are you interested in how this draft might impact retail investors or trading firms more specifically?