嗨，大家！FINRA 又发布最佳执行通知了，都注意着点儿！

ELIA: When market makers like Citadel or Virtu profit off a spread, and are willing to pay back a fraction of their profit to the broker, the market maker doesn't care if the broker pockets the money (PFOF) or gives it back to the retail investor (price improvement). This makes sense--why would they? "I pay you money; I don't care what you do with it".

/u/dlauer - do you mind clarifying for me the following:


FINRA is saying that brokers CANNOT negotiate higher payment for order flow instead of price improvement.


Is FINRA telling brokers they can no longer do something they were previously able to do, or is FINRA reminding brokers that they can't be engaging in this activity

If you are still on RobingTheHood you are to blame if this moons and you are stuck with rocks instead of money, do it ASAP and transfer to Fidelity, Vanguard or any other big institution that has been mentioned here.

I transfer from RobingTheHood to Webull, to Vanguard, I'm done with these platforms, when you open your new account, they will do the transfer of shares, you just need to have enough money to pay for the transfer fee for Webull I believe it was 35 dlls, and it took a day to do it, RobingTheHood is admitting that they don't know if what happened in January will happen again that just tells you they are playing with your money and they will screw you no matter what, SO GET THE HELL OUT ASAP DO NOT WAIT!!!!!

Hey u/dlauer

This seems like good information, but I have a couple comments.

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best execution for customer orders... must regularly evaluate whether reliable superior prices are accessible for the customer orders they handle....

In my experience as a teacher there are things considered as "best practice" which essentially are those practices which should be in the best interest of learning for the children, but "best practice" is always up for debate in education.

From the perspective as a student of radical behaviorism, the concept of explicit definitions being objective, clear, and complete are essential. FINRA is not clear what they define "customer", "best execution", and "regularly evaluate". These are all up for debate given that they do not explicitly lay them out.

If FINRA intends to hold brokerages and market makers accountable they really need to hone in on the language and be more explicit if they really want to ensure that PFOF isn't taking place. "Customer" could easily be linguistically misconstrued by brokerages and market makers to benefit them, (IE Citadel is RobinHood's Customer via PFOF)

Would just be better if they explicitly defined. Cause where I'm sitting it's a bit vague and could easily be twisted to work to the benefit of folks engaged in Payment For Order Flow.