UK Financial Services Authority: Guidance on Payment for Order Flow
( May 14, 2012, 15:55 GMT | Official Statement) -- MLex Summary: Brokers that receive payments from market makers, in exchange for sending them order flow, must manage the inherent conflicts of interest that arise, according to guidance published by the UK Financial Services Authority. This is only of concern when brokers act on a client’s behalf, rather than simply act as an intermediary between market makers. Passing on any commission to the client and ensuring the broker discloses any conflicts are ways that a broker can avoid breaking the rules.
The text of the statement follows Click the attachments below to read the documents....
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