4 ms·
I am not a lawyer, but the problem with this $34mm is that seems to be illegal. Quote: "In the United States, accepting payment for order flow is only allowed i
by janmo 6y ago
I am not a lawyer, but the problem with this $34mm is that seems to be illegal. Quote: "In the United States, accepting payment for order flow is only allowed if no other trading venue is quoting a better price on the National Market System"
- jkhdigital 6y agoRight... so everyone quotes the same price, and then they compete based on paying more for order flow instead of the sticker price. It’s the difference between having a larger bid-ask spread or larger transaction fees: either way, the cost of execution will be paid.
- tptacek 6y agoRetail order flow directed to electronic market makers obtains better prices than the NBBO. That's what "price improvement" refers to. The entire controversy here is about how much better than the NBBO Robinhood's prices were.