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‘No evidence that PFOF harms price execution,’ finds new research

1 点作者 client4超过 2 年前

1 comment

salawat超过 2 年前
Seemingly massive editorialization going on here.<p>Money shot from the article:<p>&gt;However, new research indicates that the current disclosure regime is insufficient and provides limited information regarding the quality of price execution across brokers – largely due to the difficulty in comparing the actual retail price execution quality of different brokers.<p>&gt;“Self-reporting is haphazard and inconsistent across brokers,” noted the paper. “All brokers claim to provide ‘price improvement’ over the National Best Bid Offer (NBBO) price, a benchmark that is easily beaten, albeit often narrowly.”<p>&quot;The data that would be required to make a measurement is not available in our current reporting regime&quot; is a hell of a different thing to say than &quot;the data is in, and &#x27;paying for order flow&#x27; has no adverse effects or indicators that the order flow information is being used to modify the order in which transactions are executed by brokers.&quot;<p>Given the insane level of technicality and jargon in the space it may not be off in exactly the way I&#x27;m thinking, but I know a report saying &quot;we ain&#x27;t got sufficient metrics&quot; from &quot;all data indicates&quot; when I see one.