New Rules Spur Decline in Nasdaq Spreads

Trading spreads on the Nasdaq Stock Market declined 31% as a result of the Securities and Exchange Commission’s new trading rules, Nasdaq said. The new rules, which went into effect Jan. 20, have cut spreads--the difference between the purchase and sale price of stocks--from an average of 35 cents before the rules to 24 cents, according to a study by the National Assn. of Securities Dealers, Nasdaq’s parent. The rules, adopted in August in response to charges of price fixing by Nasdaq dealers, aim to ensure that investors get the best available prices on Nasdaq, the nation’s second-biggest stock market.