PFOF regulation and market data: What does the future hold?
As a Congressional report delves into Robinhood's response to the meme stock frenzy of early 2021, Jo wonders how future regulation of payment for order flow will impact market data pricing.
It might have made more headlines had the US Supreme Court not overturned Roe v Wade on June 24. But that was also the day the House Financial Services Committee published its findings on the “meme stock market event” of January 2021.
The 140-page report details how introducing brokers—it focuses particularly on how events unfolded at Robinhood—failed to respond adequately to unexpected market volatility driven by meme stock trading, to the point that they had to impose trading restrictions on
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