US SEC chief Gensler unveils plan to overhaul Wall Street stock trading

The top U.S. securities regulator on Wednesday proposed rule changes to transform how Wall Street handles retail stock trades after the meme stock mania last year raised questions about whether mom-and-pop investors were getting the best price.

The plan, unveiled by U.S. Securities and Exchange Commission chair Gary Gensler, would require trading firms to directly compete to execute trades from retail investors to boost competition.

The Wall Street watchdog plans to scrutinize the controversial payment for order flow (PFOF) practice, in which some brokers, like TD Ameritrade, Robinhood Markets and E*Trade, are paid by wholesale market makers for orders.

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