The New York Stock Exchange finds itself at odds with major pensions and some of the world's biggest asset managers in a fight to preserve a big way exchanges attract business.
At issue is the Securities and Exchange Commission's plan to run a pilot test of how the stock market is affected by the transaction fees and rebates that exchanges use to attract trade orders from brokers.
The thinking is these fees and rebates, now common across the U.S. stock market, actually distort how stock trades are handled, costing investors money. The SEC plans to see how lowering the fees and rebates for trading in some stocks changes things.
Just how much money is at risk is difficult to say. If it's true that investors are getting a worse price for their trades with the rebates in place, it would amount to fractions of a penny, perhaps. But over a long period of time and a big number of trades, those pennies add up.