Payment for Order Flow - Revision history

imported>Doug Williamson: Expand definition.

2022-01-27T01:05:45Z

Expand definition.

← Older revision		Revision as of 01:05, 27 January 2022
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	(PFOF).		(PFOF).

	Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the former [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending clients' orders to them.		Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the former [[FSA]], as an arrangement whereby a retail [[broker]] receives payment from wholesale [[market maker]]s, in exchange for sending clients' orders to them.

	The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.		The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.

imported>Doug Williamson: Update first sentence.

2022-01-27T01:05:12Z

Update first sentence.

← Older revision		Revision as of 01:05, 27 January 2022
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	(PFOF).		(PFOF).

	Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the former [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending ~~order flow~~ to them.		Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the former [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending clients' orders to them.

	The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.		The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.

imported>Doug Williamson: Simplify last sentence.

2022-01-25T07:09:49Z

Simplify last sentence.

← Older revision		Revision as of 07:09, 25 January 2022
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	The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.		The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.

	More generally ~~in the European Union~~, such payments may fall foul of the ~~EU's [[MiFID]]~~ rules on "inducements" reflected in the FCA's ~~Handbook ([[http://fshandbook.info/FS/html/FCA/COBS/2/3]] at 2.3.1)~~.
			More generally, such payments may fall foul of the rules against "inducements" reflected both in the FCA's regulations and MiFID.

imported>Doug Williamson: Identify financial conduct context.

2018-08-21T13:12:04Z

Identify financial conduct context.

← Older revision		Revision as of 13:12, 21 August 2018
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			''Financial conduct''.

	(PFOF).		(PFOF).

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	*[[Best execution]]		*[[Best execution]]
	*[[Best execution rule]]		*[[Best execution rule]]
			*[[Broker]]
			*[[Conduct]]
			*[[Financial Conduct Authority]]
			*[[Market maker]]
			*[[MiFID]]

	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]

imported>Doug Williamson: Add links.

2016-12-13T13:50:24Z

Add links.

← Older revision		Revision as of 13:50, 13 December 2016
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	More generally in the European Union, such payments may fall foul of the EU's [[MiFID]] rules on "inducements" reflected in the FCA's Handbook ([[http://fshandbook.info/FS/html/FCA/COBS/2/3]] at 2.3.1).		More generally in the European Union, such payments may fall foul of the EU's [[MiFID]] rules on "inducements" reflected in the FCA's Handbook ([[http://fshandbook.info/FS/html/FCA/COBS/2/3]] at 2.3.1).


			==See also==
			*[[Best execution]]
			*[[Best execution rule]]

	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]

imported>Doug Williamson: Update.

2016-12-13T08:02:37Z

Update.

← Older revision		Revision as of 08:02, 13 December 2016
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	(PFOF).		(PFOF).

	Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.		Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the former [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.

	The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.		The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.

imported>Doug Williamson: Updated entry: corrected spelling mistake (orginally) and added FCA as acronym after full name.

2015-01-14T16:44:26Z

Updated entry: corrected spelling mistake (orginally) and added FCA as acronym after full name.

← Older revision		Revision as of 16:44, 14 January 2015
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	(PFOF).		(PFOF).

	Payment for order flow is defined by the UK [[Financial Conduct Authority]] in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], ~~origibnally~~ issued by the [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.		Payment for order flow is defined by the UK [[Financial Conduct Authority]] (FCA) in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], originally issued by the [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.

	The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.		The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.

imported>Doug Williamson: Categorise the page.

2014-07-31T19:13:41Z

Categorise the page.

← Older revision		Revision as of 19:13, 31 July 2014
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	More generally in the European Union, such payments may fall foul of the EU's [[MiFID]] rules on "inducements" reflected in the FCA's Handbook ([[http://fshandbook.info/FS/html/FCA/COBS/2/3]] at 2.3.1).		More generally in the European Union, such payments may fall foul of the EU's [[MiFID]] rules on "inducements" reflected in the FCA's Handbook ([[http://fshandbook.info/FS/html/FCA/COBS/2/3]] at 2.3.1).

			[[Category:Compliance_and_audit]]

imported>Doug Williamson: Standardise punctuation in abbreviation at start.

2014-07-31T17:30:57Z

Standardise punctuation in abbreviation at start.

← Older revision		Revision as of 17:30, 31 July 2014
Line 1:		Line 1:
	PFOF		(PFOF).

	Payment for order flow is defined by the UK [[Financial Conduct Authority]] in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], origibnally issued by the [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.		Payment for order flow is defined by the UK [[Financial Conduct Authority]] in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], origibnally issued by the [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.

imported>John Grout: To create the entry

2014-07-31T10:29:34Z

To create the entry

New page

PFOF

Payment for order flow is defined by the UK [[Financial Conduct Authority]] in FG12/13 [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fsa-fg1213], origibnally issued by the [[FSA]], as an arrangement whereby a [[broker]] receives payment from [[market maker]]s, in exchange for sending order flow to them.

The FCA sees such arrangements (whatever called) as creating potential conflict of interest and pressing against best execution of orders for clients and, accordingly, compromising observation of its best execution rule.

More generally in the European Union, such payments may fall foul of the EU's [[MiFID]] rules on "inducements" reflected in the FCA's Handbook ([[http://fshandbook.info/FS/html/FCA/COBS/2/3]] at 2.3.1).