The Investment Company Institute has expressed concern about an aspect of the new New York Stock Exchange hybrid market plan, according to Dow Jones. The "broker agency interest file" allows brokers to post orders outside of the best price available that arent displayed with other orders but that generally receive the same priority.
These hidden orders raise questions about market transparency. "We dont think theyre the right way to go," said Ari Burstein, associate counsel at the ICI. Instead, the brokers should display at least a portion of those orders as a matter of market fairness.