International Bank for Reconstruction and Development and Payment for Order Flow: Difference between pages

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imported>Doug Williamson
m (Amend "it" to "the IBRD" for clarity.)
 
imported>Doug Williamson
(Identify financial conduct context.)
 
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(IBRD).  
''Financial conduct''.


One of five institutions that make up the World Bank Group.  
(PFOF).


The IBRD aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services.  
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.


== See also ==
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).
* [[World Bank]]
 
* [[Organisation for Economic Co-operation and Development]]
 
==See also==
*[[Best execution]]
*[[Best execution rule]]
*[[Broker]]
*[[Conduct]]
*[[Financial Conduct Authority]]
*[[Market maker]]
*[[MiFID]]
 
[[Category:Compliance_and_audit]]

Revision as of 13:12, 21 August 2018

Financial conduct.

(PFOF).

Payment for order flow is defined by the UK Financial Conduct Authority (FCA) in FG12/13 [1], originally issued by the former FSA, as an arrangement whereby a broker receives payment from market makers, 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 ([[2]] at 2.3.1).


See also