Rule 19b-3

Rule 19b-3

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.

Rule 19b-3

An SEC rule that prohibits the fixing of commission rates.
References in periodicals archive ?
section] 78f(e) (1975); Adoption of Securities Exchange Act Rule 19b-3, Exchange Act Release No.
1975 saw the Securities & Exchange Commission's Rule 19b-3 and the Securities Act Amendments eliminate fixed rate commissions.