In what could be a blow to the New York Stock Exchange, the Investment Company Institute is expected to say yes to a Securities and Exchange Commission proposal to alter a longstanding trade rule, Financial Times reports.

The reform proposal, which would remove a mandate that a fund trade be completed at the best price no matter how fast or slow it is executed, would hinder the not-so-technologically reliant NYSE.

John Thain, CEO of the Big Board, is expected to tell the SEC in a Wednesday hearing that changes to the "trade-through rule" would harm U.S. markets by increasing costs and reducing liquidity.

Top fund companies argue that the rule would give them more freedom to quarterback trades into speedier electronic exchanges instead of the NYSE’s slower unit.

The ICI is expected to go a step further and actually argue that the SEC proposals should go far enough to actually make automated exchanges so routine that the NYSE would no longer qualify to make the trades at all.

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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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