Payment for orderflow
In this overview we provide you with the most important publications of the last few years on the topic of Payment for Orderflow.
| Titel | Content | From | Language | Link |
| Payment for Order Flow And Asset Choice∗ | Thomas Ernst and Chester Spatt | 06/2022 | EN | DL |
| PAYMENT FOR ORDER FLOW AND ASSET CHOICE | Thomas Ernst Chester S. Spatt | 05/2022 | EN | DL |
| DBG response to IOSCO Retail Market Conduct Task Force Report | Deutsche Boerse Group | 05/2022 | EN | DL |
| Last chance for Member States to support EU citizens as investors and finally ban Payment for Order Flow (PFOF) | Better Finance | 05/2022 | EN | DL |
| The New Investing Environment for Retail Investors | Better Finance | 05/2022 | EN | DL |
| Position Paper on Payment on Orderflow | Better Finance | 05/2022 | EN | DL |
| PFOF and zero-commission brokerage | ESMA | 04/2022 | EN | DL |
| We support ESMA’s position on PFOF and stand with retail investors | Equiduct | 04/2022 | EN | DL |
| Internalized Retail Order Flow: Informed Trading or Liquidity Provision? | Yashar H. Barardehi Dan Bernhardt Zhi Da Mitch Warachka | 04/2022 | EN | DL |
| Payment for order flow: an analysis of the quality of execution of a zero-commission broker on Spanish stocks | Policy and International Affairs Directorate General | 03/2022 | EN | DL |
| REVIEW OF THE MARKETS IN FINANCIAL INSTRUMENTS REGULATION / MIFID II | BEUC | 02/2022 | EN | DL |
| THE MARKET PLAYERS DOING RETAIL TRADING RIGHT | Optiver | 02/2022 | EN | DL |
| Hype or New Normal? Insights into the motives and behavior of a new generation of investors | DIW-ECON | 02/2022 | EN | DL |
| RESEARCH PAPER ON DETRIMENTAL EFFECTS OF “INDUCEMENTS” | Better Finance | 02/2022 | EN | DL |
| Payment For Order Flow And the Great Missed Opportunity | Hastings Business Law Journal | 12/2021 | EN | DL |
| Payment For Order Flow & Market Implications | The Bureau of National Affairs, Inc | 12/2021 | EN | DL |
| Proposal for an amending Regulation (EU) No 600/2014 as regards [...] prohibiting receiving payments for forwarding client orders | EU | 11/2021 | EN | DL |
| Private investors and the emergence of
neo-brokers: Does payment for order flow harm
private investors? | Prof. Dr. Steffen Meyer, Dr. Charline Uhr, Prof. Dr. Lutz Johanning | 11/2021 | EN | DL |
| Payment for Order flow is really the ‘OUTSOURCING' | 08/2021 | EN | DL | |
| PAYMENT FOR ORDER FLOW Internalisation, Retail Trading, Trade-Through Protection, and Implications for Market Structure | CFA Institute | DL | ||
| Interactive Brokers - Disclosure PFOF | IBKR | 07/2021 | EN | DL |
| ESMA warns firms and investors about risks arising from payment for order flow and from certain practices by “zero-commission brokers” | ESMA | 07/2021 | EN | DL |
| The issue of payment for order flow | FESE | 05/2021 | EN | DL |
| Enhancing Competition, Transparency, and Resiliency in U.S. Financial Markets | Citadel Securities | 05/2021 | EN | DL |
| Germany torpedoes "Payment For Order Flow" ban | Finanz-Szene | 04/2022 | EN | DL |
| Verbot von Rückvergütungen für die Weiterleitung von Handelsaufträgen | Bundesrat | 03/2022 | DE | DL |
| Vorschlag [ ... ] Verbot der Entgegennahme von Zahlungen für die Weiterleitung von Kundenaufträgen | Bundesrat | 01/2022 | DE | DL |
| Broker-Dealers and Payment for Order Flow | Congressional Research Service | 04/2021 | EN | DL |
| Payment for order flow: an analysis of the quality of execution of a zero-commission broker on Spanish stocks | CNMV | 03/2021 | EN | DL |
| The Good, The Bad & The Ugly of Payment for Order Flow | BestEx Research | 03/2021 | EN | DL |
| Payment for Order Flow: How Wall Street Costs Main Street Investors Billions of Dollars through Kickbacks and Preferential Routing of Customer Orders | Better Markets | 02/2021 | EN | DL |
| How Payment For Order Flow is impacting markets: The Robinhood and Citadel Case | Bocconi Students Investment Club | 02/2020 | EN | DL |
| The Impact of Zero Commissions on Retail Trading and Execution | Greenwich Data Analytics | 01/2020 | EN | DL |
| Private investors and the emergence of neo-brokers: Does payment for order flow harm private investors? | Prof. Dr. Steffen Meyer, Dr. Charline Uhr,Prof. Dr. Lutz Johanning | EN | DL | |
| Payment for Order Flow | FCA | 04/2019 | EN | DL |
| PAYMENT FOR ORDER FLOW IN THE UNITED KINGDOM | CFA Institute | 06/2012 | EN | DL |
| Guidance on the practice of ‘Payment for Order Flow’ | FCA | 05/2012 | EN | DL |
| The Relationship between Market-making Revenue, Payment for Order Flow, and Trading Costs for Market Orders | Robert Battalio | 02/2000 | EN | DL |
| Das Verbot von Payment for Orderflow ist verfrüht | Börsenzeitung | 04/2022 | DE | DL |
| Studie zur Ausführungsqualität an ausgewählten deutschen Handelsplattformen | BaFin | 04/2022 | DE | DL |
| DDV begrüßt Stellungnahme des Bundesrats zu Payment for Order Flow | DDV | 03/2022 | DE | DL |
| Was Neo-Broker versprechen - und halten | BaFin | 06/2021 | DE | DL |
Dear CEO-Letter Payment for Order Flow (PFOF) | FCA | 12/2017 | EN | DL |
| Internalisierung und Marktqualität: Was bringt Xetra Best?* | Erik Theissen | 06/2002 | DE | DL |
The term "payment for order flow" (PFOF) refers to a method of remuneration in which a financial services provider, usually acting as an intermediary, forwards client orders to a trading partner and pays a commission (reimbursement) to the intermediary in return.
This business model is criticised for undermining the principles of best execution, especially in pre- and post-trade where there is no reference market. Consumer protectors also point out that the terms "fee-free trading", "free of charge", "zero fees" used in this context mask the actual facts and must therefore be questioned from the perspective of MaComp. Even if the customer does not see any fees on his securities statement, this does not mean that he had no costs. These are extended analogously to the trading of contracts for difference and foreign exchange by widening the BID/ASK margin ("spread"). If the spread had been widened by 10 cents multiplied by a number of shares of 1,000, a fee of €100 would have arithmetically been incurred.
The American supervisory authority SEC is considering a ban on this business model. The issue is also being hotly debated at the EU level. If regulatory sanctions are imposed, as is currently being rumoured, the high-flyers of the Corona boom years will soon be allowed to occupy the top positions on the death lists.
