Litmus Test For An Alternative To PFOF And Other Market Stru

Litmus Test For An Alternative To PFOF And Other Market Structure Nuances: By Kelvin To, Founder And President Of Data Boiler Technologies

<p><span>In the EU, Capital Markets Union (CMU) set to ban payment for order flow (</span><a href="https://www.risk.net/regulation/7946841/germany-has-enough-support-to-block-eus-pfof-ban">PFOF</a><span>), while Germany is trying to block it. This controversial matter stirs up debate in the US as well. One camp favors the SEC Chair Gensler&rsquo;s hype about &ldquo;order-by-order&rdquo; competition published in a&nbsp;</span><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4116944">paper</a><span>&nbsp;that clearly benefits auction markets, such as Apex CODA. Another group of academic&nbsp;</span><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4189239">researchers</a><span>&nbsp;suggests &lsquo;no evidence that PFOF harms price execution&rsquo;. In an&nbsp;</span><a href="https://www.linkedin.com/pulse/order-by-order-competition-alternative-kelvin-to/">earlier article</a><span>&nbsp;we pointed out various flaws with the proposal to route retail order flow to auction and offered an alternative approach. In this article we address questions we received and elaborate on how this Copyright Licensing Mechanism is relevant to solving not only the retail order flow but is a revamp with various incentives to market data/ market structure issues.</span></p>

Related Keywords

Germany , Peter Martyn , Chris Steiner , Capital Markets Union , Alternative Trading Systems , Communication Protocol Systems , Black Box , Consolidated Audit Trail , Data Boiler , What Gets Paid , Who Gets What , Data Boiler Technologies At , Americas , Europe , Eneral , Regulation ,

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