Reuters scoops on planned overhaul of U.S. market maker rules

Reuters broke news that the U.S. SEC is pushing hard to tighten rules for market-makers to avoid a repeat of the May flash crash. Sources told Reuters on July 9 that talks between the SEC and exchanges are revolving around banning stub quotes by forcing market-making firms to quote within a 10 percent band around stocks. The changes could disrupt trading strategies and hit banks` market-making businesses. CNBC, ABC News and several industry websites picked up the Reuters story.