Mar. 31, 2023
PFOF should be banned. The inducements and incentives underlying PFOF distort order routing and violate the principles and duty of best execution. In doing so, PFOF undermines the fairness, simplicity, and transparency of the markets, creating a warped system in which investors are unable to find each other or interact directly, and in which their orders are productized for the benefit of high-speed speculators and rent-seekers. There are few reasons to preserve the current system and numerous compelling reasons to put an end to this deeply unequal practice. Lori Bowman