When a broker divides an order for securities into a number of smaller orders. For certain securities, smaller orders can be easier to fill, so brokers have the ability to tape shred when they believe that doing so will speed up the rate at which the order is filled.

Allowing tape shredding to happen also opens the doors for unscrupulous brokers to split a large order into many small orders for the sake of generating extra commission, as brokers are compensated for each order they fill.

However, various self-regulatory organizations and stock exchanges have limited tape shredding to only apply for order execution purposes. The use of tape shredding for other reasons could have serious consequences.

jot.pm-research.com [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

repository.unej.ac.id [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

papers.ssrn.com [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

www.sciencedirect.com [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

www.sciencedirect.com [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

arizonacommonsense.com [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

www.jstor.org [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

stars.library.ucf.edu [PDF]

… XHIBIT 2 Allocated Market Data Revenue (in millions) Total Net Income from Tapes A, B … 37 In order to maximize the probability of isolating evi- dence of tape shredding, we restrict … actively traded ETFs, widely acknowledged to be the vehicle of choice for tape shredders, in part …

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The Securities and Exchange Commission (SEC) is a federal agency that regulates the securities industry, including stock exchanges such as the National Stock Exchange (NSE).

SEC regulates the securities industry, including stock exchanges such as NSE.

Tape shredding is when a broker divides an order for securities into a number of smaller orders.

The rule change prohibited tape shredding.

Allowing tape shredding to happen also opens the doors for unscrupulous brokers to split a large order into many small orders for the sake of generating extra commission as brokers are compensated for each order they fill.

For certain securities, smaller orders can be easier to fill, so brokers have the ability to tape shred when they believe that doing so will speed up the rate at which the order is filled.

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