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Market makers began to lose significant order flow and began to piece together their own ECN systems in order to avoid damaging losses in market share.
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And, while there has been much focus and detail on institutional order routing, there are significant upgrades to disclosures about retail payment for order flow arrangements that will enable greater transparency into any potential trade-offs being made between payment for order flow and execution quality.
We document that whereas the impact of order flow on return seasonality is statistically significant, it is negligible in economic terms.
And there might be justification for payment for order flow.
JS: I'm saying order flow.
Customers get rebates on any order flow payments Datek receives.
These two vendors in particular claim increased order flow.
There is no rule against payment for order flow.
They still sell order flow, but the price for order flow has dropped by more than 50% in the last year.
There was no significant order effect.
"However, buying into order flows is no guarantee that these flows can be successfully retained.
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