An SEC rule that requires commissions for brokers 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 practices.
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An SEC rule that prohibits the fixing of commission rates.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.