Gensler Warns of Inherent Conflict in Payment for Order Flow

U.S. Securities and Exchange Commission Chairman Gary Gensler says there’s an inherent conflict of interest in payment for order flow.

“There is this tension,” Gensler told the House Financial Services Committee Thursday at a hearing on retail trading. He said the agency has found examples of such conflicts.

Gensler expressed concern over large wholesalers having an informational advantage over their competitors and said he has asked staff to look at ways to improve disclosures in how retail trades are routed.

Source: Bloomberg Law

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