FX aggregators flirt with scrutiny over brokerage charges
Making dealers pay for trades raises ‘payment for order flow’ questions
Price aggregators in the foreign exchange market could be inviting regulatory scrutiny if they collect a commission from dealers on the trades the platforms facilitate – a brokerage charging model that regulators have been discouraging as part of a clampdown on payment for order flow (PFOF).
Regulators argue brokerage models create a range of conflicts, potentially resulting in particular market-makers getting preferential treatment – and consumers of liquidity losing out. Over the past two
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