Gensler Swims Against Tide in Payment-for-Order-Flow Fight
- Move could increase costs for retail investors, analysts say
- Gensler rattles Wall Street by saying ban is ‘on the table’
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Banning payment for order flow is “on the table” at the U.S. Securities and Exchange Commission, but pulling it off won’t be fast or easy for Chair Gary Gensler.
The SEC chief rattled Wall Street this week when he hinted in an interview with Barron’s that he may be willing to prohibit brokers from getting paid to send customers’ stock orders to trading firms. The practice is deeply ingrained and has been embraced by everyone from Robinhood Markets Inc. to Charles Schwab Corp. It’s also triggered an era of free trades.