SEC investigates brokers' payment for order flow

Securities and Exchange Commission (SEC) has initiated an industry-wide investigation into payment for order flow methods used by options brokers, FO Week has learned.

An SEC letter sent out to all US options brokers on 5 July and obtained last week by FO Week, requested that firms provide SEC with a up-to-date information about order routing and execution practices in options running from 1 January 2003 to the present. All documentation is due...