Rule 19b-3 financial definition of Rule 19b-3
rule that requires commissions
to compete with each other. That is, under Rule 19b-3, brokerages are not allowed to collude to fix commissions. This rule is intended to protect the clients of brokers from anti-competitive
An SEC rule that prohibits the fixing of commission rates.
References in periodicals archive
1975 saw the Securities & Exchange Commission's Rule 19b-3
and the Securities Act Amendments eliminate fixed rate commissions.