The British regulator has lost patience with brokers' lack of progress on payment for flow and best execution
For the past three months, the industry has awaited the
publication of the Financial Conduct Authority’s
thematic review on Payment for Order Flow.
When it came on Thursday morning, the results were not
entirely a surprise. It has long been known that the FCA sees
no justification for PFOF, the process by which brokers take
payment for directing transactions to market-makers.
But there were some intriguing elements of the review in
terms of both what it said and didn’t say.
The headline news is the separation of the
'arranging’ and the 'execution’
pieces was and is, as far as the FCA is concerned, not
as reported in FOW earlier this month.
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