SEC Approves Rules to Improve Quote Access

The Securities and Exchange Commission approved rules Wednesday to give small investors access to the best available stock quotes on electronic trading networks such as Reuters Group’s Instinet Co.

The rules are part of a broad package to revamp regulation both of established markets, such as the New York Stock Exchange, and growing electronic networks that now have higher volume than the American Stock Exchange and the five U.S. regional stock markets combined.

The new standards require about 50 electronic networks, which match stock orders placed anonymously by institutions and broker-dealers, to make those institutions’ quotes public when they’re better than prices on other markets. While some networks fear the requirement could drive away business, SEC officials said investors will benefit.

“I firmly believe that fundamental fairness dictates that all investors be given an opportunity to receive the best price available,” SEC Chairman Arthur Levitt said. The rules, which were unanimously approved, will be phased in starting in April.