Wall Street trading could undergo biggest changes in nearly 20 years after SEC vote on key proposals

The United States Securities and Exchange Commission (SEC) is set to vote on whether to propose some of the most significant changes to stock markets in nearly two decades during of its December 14 meeting, Reuters reported, citing the agency.

What happened: Potential changes include new rules that would require orders to buy tradable shares to be sent to auction prior to execution. It would be a new standard for brokers to ensure they get the best possible executions for client orders, as well as lower trading increments and access fees on exchanges, said the SEC, according to the report.

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"It's about driving competition, transparency, efficiency and the marketplace," SEC Chairman Gary Gensler said in an interview with Yahoo Finance, according to the report. .

US Markets continued their weak trend on Wednesday as next week's Federal Open Market Committee meeting began to weigh on investors' minds. The SPDR S&P 500 ETF Trust SPY closed 0.17% lower on Wednesday, while the Vanguard Total Bond Market Index Fund ETF BND ended up 0.87%.

Why it matters: These changes, if implemented, would be the biggest shake-up to stock market rules since the agency introduced the National Market Regulation System in 2005, according to the report.

Gensler said he would like to see more order-by-order competition for retail stock orders, and better terms of competition between exchanges, according to the report.

Meanwhile, the SEC has reopened the comment period on proposed amendments to modernize and improve required disclosure about an issuer's redemptions of its equity securities, often referred to as buyouts .

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