The SEC is addressing the possibility of banning PFOF (payment for order flow).
Citadel and other institutions are speaking out.
Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.
The SEC Chairman could be re-routing retail investors into an automated system that would provide a deep pool of liquidity.
If this goes through, it will be historic.
Let’s discuss it.
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SEC Payment For Order Flow ban
Gary Gensler will be speaking on Wednesday in regard to best execution for market orders.
The SEC has been under heavy scrutiny by retail investors as the agency has not made any progress to level the playfield.
The government branch that’s supposed to protect retail investors has even gone as far as taunting investors for buying ‘meme stocks’ recently.
But industry participants have quietly been saying that Gensler will likely use a speech at the Piper Sandler Global Exchange Conference on Wednesday to float several proposals.
These may include best execution and payment for order flow according to CNBC.
Last year during the ‘meme stock’ frenzy, Citadel processed retail’s orders through Robinhood.
Citadel paid Robinhood to give them those orders (PFOF).
However, retail investors don’t want their orders going to Citadel since the market maker/hedge fund/dark pool are short on ‘meme stocks’.
90%-95% of retail’s orders are not processed though the lit exchange.
Citadel takes these orders and trades them at a bargain through foreign exchanges.
Although PFOF is an expense to them, they make a lot more money processing the orders.
If the SEC PFOF ban goes through, orders would not be processed by Virtu or Citadel.
Citadel fights back
A spokesperson for Citadel Securities released the following statement to CNBC:
“It is important to recognize that the current market structure has resulted in tighter spreads, greater transparency, and meaningfully reduced costs for retail investors. We look forward to reviewing the proposals and working with the SEC and the industry towards our longstanding objective of further improving competition and transparency.”
“You need to be very deliberate on that approach,” Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said.
“We have been calling for a review of market structure for some time, but let’s be careful not to try to fix things that may not be broken,” he said. “The retail investor is getting a better deal than they ever have.”
Would you pay small trading fee if it meant Citadel and Virtu no longer reroute your orders to benefit their pockets?
Leave a comment below.
The statement alone that retail is getting a better deal than ever before is such a dishonest thing to spew.
These institutions have been taking retail’s money, using it against them, all while taking no accountability for their actions.
It’s not clear yet whether the SEC PFOF ban will go through or not.
It is certainly something worth discussing though, don’t you think?
Leave your thoughts below.
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Fuck citadel, fuck pfof, and Def fuck Kenneth vewdpost griffin. I would kill to sit in a msm stage with him and sifu from virtu. It would be the greatest honor to beat half the life outvof these two fucks who claim they are good for us while we have evince they are criminals and fuck us over all the time. All tge sec and government are g o nna do us give us sone weak ass piric victory that has zero meaning as they spin it and make us look like retards who don’t know any better. Tgey fear nothing from anyone so they will all continue to fuck us over bc they don’t let us speak up anyway.aa talks about pouncing.. put me in a room with these two horrible shitty people on live TV and I’ll show u a pounce in which I make grown ass old powerfully men piss their pants as I beakbone after bone untill tgey admit tge real pieces of ahit they are. Rant over
I would pay they need to be charged and put infront of a trial they are counterfeiting.
Kenneth Griffin said PFOF was a COST for them? WHY are they fighting it? Prison.. is the only answer..
Currently and gladly paying a commission of $10 per transaction small time flat fee. Also PFOF banned in Canada 😎
As someone who started trading in the last few years, I always just thought the markets were open and transparent. I see now that this is not the case. Kenny G and his pals are criminals and their time has come. I have faith the SEC will do the right thing.
Much rather pay fee than Shitadel route my buys through darkpools which does not influence price at all…Then Shitadel routes all sells through lit exchanges and of course this directly affects price in a negitive way…And this Kenneth C. Griffen says is not a conflict if interest…
I would definitely prefer to pay for my own trades. Who ever asked them to pay it for us. My shares my fee. Get your hands out of our pockets.
I’d rather pay a fee than get screwed over by my own government and lackies
Sounds like these Citadel and Virtu criminals are trying to sell us some beach front swamp land in Florida…
I would pay a fee!
I’d rather pay a fee to trade; in fact fidelity already charges me $0.10 per trade and they sometimes still route through citadel. I want my trades to go through lit exchanges not fake dark pools or off exchanges.
If you believe that, I have a bridge to sell you
I would Absolutely pay a fee and citadel is cancer to a free market..
Where did the comments/feeds go on Webull today? They’ve all been erased? Moved? Anyone know?
In Canada, PFOF is supposedly banned, yet BMO and Scotia iTrade have *both* confirmed to me they *must* route through Citadel for any US securities on the NYSE. And we *still* pay for every trade.
So, short, HELL YES Virtu and Citadel need to be pushed out of retail’s way. All retail trades are being moved OTC, and don’t affect the lit markets, buy pressure or true price discovery. It’s disgusting and a complete violation of a ‘free market’.
Fees are not necessary…? Payment for order flow is BANNED in the UK, and commission free brokers still exist.
GIVE ME THE FEE! FUCK CORRUPTION!
I already pay a fee buying my shares through transfer agents like Philidelphia Stock Transfer, Computershare, etc. Definite conflict of interest for these companies scraping pennies from trades.
I’ll pay the 7$ per trade fee my dad had to pay to scottrade. No biggie, either pay more now, or slowly have my entire portfolio taken from me. And lending my shares and shorting me to death.
Yep, he said would rather than do it… he’s just another psychopath lying piece of shit criminal that is suppose to be in prison but instead our government protects him… why? Because he’s a puppet too.
Yes, yes he did LMAO
Hört sich richtig an
Es ist eine verfluchte , korrupte Bande, dagegen ist die Mafia ein Kindergarten..
Didn’t Kenny say on TV he would welcome banning of pfof , cause he would save money😆😅🤣😂
i would gladly pay a fee
If my memory serves me correct, didn’t Ken say PFOF was an expense for him on an interview.
I would pay a fee!!
I would pay a fee, and I believe that some of the hedge fund managers and market makers need to go to prison.
gladly pay a fee
Fidelity does not have PFOF, is commission free, and I direct all my trades through a lit exchange.
Fidelity turns out to be corrupt so they are making money somehow. They are going in to business with Shitadel and Virtu. The fact is that criminals have infested the financial system and the government and there is NOTHING that will ever stop them. No one in the government is going to do what it takes to stop the theft so it will just grow and grow and grow.
I definately would oay a fee if it will end the corrupt market
I would absolutely rather pay a fee!
Thank you once again for keeping us informed. I believe PFOF was a good idea when it was implemented, but that was before operators like Citidel could manipulate the process itself. This is where it went wrong.
It needs to go and a new system put in place that is transparent and honest.
To the moon!
I would rather pay a fee
I would always pay a fee if PFOF corruption will be banned.
I would have no problem paying a fee in order for my orders to go directly to a lit exchange.
I’d pay more per order to ban pfof
The only time investors get a better deal ia after PFOF and dark pools is only used for what it was meant for,large block orders from the likes of institutions. The icing on da cake would be to see Ken Griffin and his muppets behind bars.
I would be making a lot lesss trades, but at least the trades i make will have some sort of impact. I want real price discovery!
I’d rather pay a fee for a more fair and transparent market.
Do already do pay a fee. Every transaction is charged. Also, even with a 10% fee they will still cheat the markets. When there were fees massive fraud still happened and the SEC did squat. Lunatics run the asylum so why do you think they will ever do anything to be more fair and transparent so you can get a piece of the pie? The system is the disease and it will never get better until it is replaced with a system that actually severely punishes those who do the biggest crimes like with massive torture.
Let’s start a discussion! Leave your thoughts below.
Yeh, i will pay fee more then happy,,,Kenny G is a criminal and financial terrorist!