ZBB 2022, 141
Payment for Order Flow
Table of contents
- I. Background
- 1. Model and functioning
- 2. Criticism
- 2.1 Investor protection concerns
- 2.2 Market infrastructure concerns
- 3. Supervisory response
- 3.1 US response and market structure
- 3.2 EU response and market structure
- II. MiFID II framework
- 1. Best execution
- 1.1 Basic framework
- 1.2 Best execution policy
- 1.2.1 Selecting a single venue?
- 1.2.2 Selecting execution venues: which venues are relevant?
- 1.2.3 Selecting execution venues: making a choice
- 1.2.4 Method of comparison
- 1.2.5 Execution price and spread in PFOF
- 1.3 Regular review
- 1.4 Ongoing monitoring
- 1.5 Conclusion
- 2. Inducement regime
- 2.1 Quality enhancement
- 2.1.1 Additional or higher level of service
- 2.1.2 Inducements and profit
- 2.1.2.1 No profits from inducements?
- 2.1.2.2 Proportionality of inducements
- 2.2 Best interest of the client
- 2.3 Conclusion
- 3. Conflicts of interest
- 3.1 Identifying PFOF as a conflict of interest
- 3.2 Dealing with conflicts of interest
- 4. Cost transparency
- 4.1 Disclosing PFOF to clients
- 4.2 Disclosing implicit costs (the “spread”)
- III. Proposed EU legislation
- 1. General background of the MiFIR proposal
- 2. Art. 39a MiFIR
- IV. Conclusion
- *
- *)Dr. iur., LL.M. (Chicago), lawyer with Freshfields Bruckhaus Deringer PartG mbB, Frankfurt/M.
- **
- **)LL.M. (Columbia), lawyer with Freshfields Bruckhaus Deringer PartG mbB, Frankfurt/M.
Der Inhalt dieses Beitrags ist nicht frei verfügbar.
Für Abonnenten ist der Zugang zu Aufsätzen und Rechtsprechung frei.
Sollten Sie über kein Abonnement verfügen, können Sie den gewünschten Beitrag trotzdem kostenpflichtig erwerben:
Erwerben Sie den gewünschten Beitrag kostenpflichtig per Rechnung.
Erwerben Sie den gewünschten Beitrag kostenpflichtig mit PayPal.