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SEC Set to Let Wall Street Keep Payment-for-Order-Flow Deals

  • Gensler had floated possible prohibition in sweeping overhaul
  • Regulator weighing ways to push more trading to exchanges
Bloomberg business news
SEC to Allow Payment-for-Order-Flow Deals
Updated on

The US Securities and Exchange Commission will stop short of banning payment for order flow, a controversial way to process retail stock trades, as it proposes new rules for the $48 trillion American equities market.

The decision, described by people familiar with the matter, follows months of internal deliberations at the agency. It marks a win for brokerages that get paid for processing rights, although the SEC may still enact other changes that make the practice less profitable, according to the people.