France seeks to broker deal on retail share trading in EU
A European Union proposal to ban payment-for-order flow (PFOF) on stock markets could be ditched if the practice came under stricter conditions, an EU paper authored by France has shown. PFOF drew scrutiny last year when an army of retail investors flocked to “meme stocks” on Wall Street, using stockbrokers who touted for business by charging zero fees, making money by sending the orders to a specific platform for execution. This triggered heavier European retail interest in shares and prompted regulators to take a closer look at the practice. The EU’s executive European Commission has proposed banning PFOF, saying investors could miss better prices elsewhere.
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