Opposition to payment for order flow (PFOF) continued to
gain momentum last week as options exchanges and participants
applauded the Securities Exchange Commission (SEC)'s call for a
halt to the practice.
In a written response to SEC chairman Harvey Pitt's call for
the elimination of "exchange-sponsored" payment for overflow
programs, Chicago Board Options Exchange (CBOE) chairman Bill
Brodsky said the SEC should go a step further and eliminate all
payment for order flow programs.
"If the commission banned only 'exchange-sponsored' PFOF
plans today there may continue to be just as much PFOF
operating tomorrow as "non-exchange sponsored" PFOF. The
conflict of interest concerns are the same regardless of
whether the plan is 'exchange-sponsored' PFOF or
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.