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Former Fidelity exec seeks repeal of an SEC stock trading rule

Nov 20 2012 Emily Flitter, Reuters

A former Fidelity Investments vice president who ran the firm's Nasdaq trading department has called for the U.S. Securities and Exchange Commission to roll back one of its rules on stock trading. In a paper, Leslie Seff, who ran trading departments that provided liquidity for specific stocks, said the current market structure impeded initial public offerings and relied too heavily on high-frequency trading. Seff called for the SEC to repeal part of a 2007 package of rules called Reg NMS that requires dealers to meet every order for a stock at a given price anywhere in the marketplace, even if the price is just a tiny fraction higher than a large order waiting to be filled. This change would eliminate some high-frequency trading firms' practice of using powerful computers to react in split-seconds to other market activity, such as a block order by a pension or investment management fund, and take advantage of tiny price differences. "The equity markets are being

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