--- title: "The Maker-Taker Model and Access Fees: It’s Time for the SEC to Correct the Prisoner’s Dilemma" description: "The Maker-Taker Model and Access Fees: It’s Time for the SEC to Correct the Prisoner’s Dilemma" --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/maker-taker-model#popup-newsletter) #### Want the latest news on securities markets -- FREE? Sign up to receive exclusive articles on topics including: - Equity market structure - Profiles of buy-side investment firms - The evolution of multi-asset-class trading - Regulation and its implications for markets - The search for liquidity in fixed income markets - The convergence of fintech and capital markets Select one or more newsletters you would like to receive: menu [![Markerts media](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/header%20logo.svg "Markerts media")](https://articles.marketsmedia.com/) - [Uncategorized](https://articles.marketsmedia.com/tag/uncategorized) - Uncategorized - The Maker-Taker Model and Access Fees: It’s Time for the SEC to Correct the Prisoner’s Dilemma Search - [Home](https://articles.marketsmedia.com/) - [Trending](https://articles.marketsmedia.com/tag/trending) - [Featured](https://articles.marketsmedia.com/tag/daily-email-feature) - [Sectors](https://articles.marketsmedia.com/tag/sectors) - [From The Markets](https://articles.marketsmedia.com/tag/from-the-markets) - [AWARDS](https://articles.marketsmedia.com/tag/events) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Newsletter](https://articles.marketsmedia.com/maker-taker-model#popup-newsletter) Hide search Search - NewsLetter ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/trading-up-occ-iex-select-board-members-citadel-lands-lieblich-573x379-Jul-07-2022-09-34-11-57-AM.jpg) [ON THE MOVE: Citi Hires Artie Ambrose;...](https://articles.marketsmedia.com/on-the-move-citi-hires-artie-ambrose-natalie-a-brown-to-mesirow) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_445735906_L.jpg) [Trading Adapts to ESG and Sustainable...](https://articles.marketsmedia.com/trading-adapts-to-esg-and-sustainable-investing) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-917493152-Jul-07-2022-09-34-19-09-AM.jpg) [Focus on FX Execution Connectivity](https://articles.marketsmedia.com/focus-on-fx-execution-connectivity) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_333839538_L.jpg) [TRACE Turns 20](https://articles.marketsmedia.com/trace-turns-20) 01.27.2014 By Terry Flanagan Uncategorized # The Maker-Taker Model and Access Fees: It’s Time for the SEC to Correct the Prisoner’s Dilemma 01.27.2014 By Terry Flanagan [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/maker-taker-model) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/maker-taker-model) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/maker-taker-model) The following comment is the opinion of the author and not necessarily the opinions of my employer, Bloomberg Tradebook, or our parent company, Bloomberg Financial L.P. The SEC created a prisoner’s dilemma by setting a cap on “access fees” with Regulation NMS in 2005. The SEC must act and cut the fee they set in order to minimize the market structure distortions that are caused by this fee model. Recently, some have called for this system/model to be dismantled completely. It is the author’s opinion that the SEC is unlikely to do this, as such a move would be too radical; an easier and more consistent action would be to simply cut the cap. It is the author’s opinion that lowering the cap will serve to minimize the distortions. This topic is a little complicated. I, hopefully, will simplify it. [Continue reading on The ’Book »](http://www.bloombergtradebook.com/blog/maker-taker-access-fees/) [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/maker-taker-model) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/maker-taker-model) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/maker-taker-model) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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