PFOF to be banned in Europe from 2026

[Drawdown Addict]

Some so-called profesional traders are going to cry out loud, when they won't be able to milk retail traders in Europe.

https://www.consilium.europa.eu/en/...posal-to-strengthen-market-data-transparency/

 

[cesfx]

I Wish they let retail trade american ETF's... As that miifid regulation is ridiculous.

Yes to CFD, expensive European etf replicating USA etf, but no the real thing. To safeguard retail traders?

 

[nitrene]

Overregulation is all the idiots in the EU know. They really just want to outlaw risk taking since they believe regular people are idiots. Bow down to the EU Monarchs.

 

[cesfx]

Overregulation is all the idiots in the EU know. They really just want to outlaw risk taking since they believe regular people are idiots. Bow down to the EU Monarchs.

It doesn't even reduce risks, it just increases costs.

Spy5(EU) commission is nearly X5 of Spy(US). CFD's have overnight costs.

 

[2rosy]

so this means orders go to an exchange and get matched? from a market maker that paid for the privilege of getting that order flow?

 

[Drawdown Addict]

Let's also include in the conversation that PFOF has been advertised as a way to improve trades filling for retail traders.

It is not a surprise that such claim is not even true, when it is analyzed.

https://www.cnmv.es/DocPortal/Publicaciones/OTROS/Analisis_PFOFen.pdf

 

[Drawdown Addict]

so this means orders go to an exchange and get matched? from a market maker that paid for the privilege of getting that order flow?

It means that PFOF has been used to publish broker's client trades to the best buyer, so professional firms can see where those retail traders are positioned in the market. That wouldn't be an issue if their stop limits weren't published as well, but they are.

So those firms can try to set a market direction in order to trigger those stops to get liquidity.

PFOF is the reason why retail traders are constantly stopped in the market.

 

[2rosy]

It means that PFOF has been used to publish broker's client trades to the best buyer, so professional firms can see where those retail traders are positioned in the market. That wouldn't be an issue if their stop limits weren't published as well, but they are.

So those firms can try to set a market direction in order to trigger those stops to get liquidity.

PFOF is the reason why retail traders are constantly stopped in the market.

Do you know how inconsequential retail traders are? They are interlopers. Where are stop limits published?

 

[Slow Learning Elf]

Do you know how inconsequential retail traders are?

Not really « inconsequential » which is why Citadels and Getcos of the world want that flow. It’s pure noise traders placing orders, which is great for HFT MMs.

PFOF is the reason why retail traders are constantly stopped in the market.

Retail traders are not moving the market, LOL. The reason why they get stopped out is because they are, on average, idiots.

 

[zdreg]

interlopers.

Interlopers is* used in finance to describe someone who makes a better bid for a public co. after the initial bid and acceptance of the bid but before closing.

What is your definition?