The Securities and Exchange Commission rejected a new order type from Nasdaq for the first time ever last week. The order types, which were designed to attempt to out perform common trading benchmarks would put the exchange in direct competition with broker-dealers, which the SEC considered a nonstarter. Also, according to objections raised by the Securities Industry Financial Markets Association, Nasdaq as a market operator would not have to meet Market Access Rule requirements which govern participants offering those types of algorithms.

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