July 11, 2012 / 3:50 PM / 6 years ago

SEC votes 3-2 to adopt audit trail rule

WASHINGTON (Reuters) - A divided Securities and Exchange Commission on Wednesday adopted a rule designed to bolster the agency’s surveillance of the equities markets by establishing a central database that stores information on every trade order, execution and cancellation.

The rule will bring the SEC one step closer to finally having a consolidated audit trail to help it better police for market manipulation and insider trading, though the new database will not be operational in the near-term.

The SEC voted 3-2, with commissioners Luis Aguilar and Elisse Walter dissenting amid concerns that the rule gives too much flexibility to exchanges and is overly weak.

Reporting By Sarah N. Lynch; Editing by Gerald E. McCormick

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