Trading

EU set to ban payment for order flow as US meme-stock platforms face uncertain future

Move to outlaw controversial revenue model sets up a showdown between EU platforms and their US rivals

Sagas like Gamestop threw the potential biases of a key revenue model into the spotlight
Sagas like Gamestop threw the potential biases of a key revenue model into the spotlight Photo: Alexander Pohl/Getty Images

The EU is set to ban payment for order flow in a landmark proposal that could overhaul how trading platforms operate in the bloc.

The EU Commission quietly confirmed on 25 November a proposal to ban the controversial revenue model for trading houses as part of its review of MiFID II and MiFIR rules.

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