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payment for order flow???

  #4 (permalink)

KNOXVILLE TN.
 
Trading Experience: Advanced
Platform: nijia trader
Broker/Data: A.M.P. I.Q. ....C.Q.G.
Favorite Futures: ym
 
Posts: 525 since Mar 2012
Thanks: 104 given, 263 received


asker View Post
Hi
Im deciding between futures brokers and was filling out a new accnt form at AMP.
one of the disclaimers I was asked to sign dealt with payment for order flow - sending my futures trades to third parties.
This is exactly what I am NOT looking for.

I was shocked to see this right there in print........

"When firms provide execution services to customers, either in conjunction with clearing services or in an execution only capacity, they may, in some circumstances, direct orders to unaffiliated market makers, other executing firms, individual floor brokers or floor brokerage groups for execution. When such unaffiliated parties are used, they may, where permitted, agree to price concessions, volume discounts or refunds, rebates or similar payments in return for receiving such business. Likewise, on occasion, in connection with exchanges that permit pre-execution discussions and "off-floor" transactions such as block trading, exchanges of physicals, swaps or options for futures or equivalent transactions, a counterparty solicited to trade opposite customers of an executing firm may make payments described above and/or pay a commission to the executing firm in connection with that transaction. This could be viewed as an apparent conflict of interest. In order to determine whether transactions executed for your account are subject to the above circumstances, please contact your executing firm account representative."

so my question is - Is this the industry standard? Or are there some firms that truly just let your trade go straight to the market without falling into the hands of another party with a conflict of interest?

Thanks -

i think that means there not a clearing firm, there not clearing all there trades. i think a lot of brokers do that.

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