drew

Payment for order flow, illustrated:https://twitter.com/TheCrueINature/status/1391340054824505349 …

It seems you don't agree with @matt_levine on PFOF. I would think you guys would be closer in opinion- I am curious how you dislike it through that lens.

It’s mostly bad for the market as a whole, because it siphons off orders that should interact with others. But I also think commissions should be explicit.

If retail gets better execution, isn't that objectively good? The small market inefficiency is worth the public financial education, methinks. Yes, indirectly economic output is adversely affected as a whole at any given time, but in the mid to long term it is beneficial to GDP

Retail is entitled to best, not better, execution. That's the problem. PFOF is carving up a pie of value. If broker 1 takes more of the pie than broker 2 does, is broker 1 delivering best execution?

I.e. why can't I have a brokerage that gives me both the Blackrock and Citidel dealer prices?

i think the model is that the "multi-dealer platform" is the lit exchanges, and the best price on that platform is the NBBO, and if your retail broker's dealer always matches and often beats that price then you can't complain. obviously you could complain, but that's the model.