French Watchdog Chief Calls for Ban on ‘Payment for Order Flow’ in EU Stock Market

French Watchdog Chief Calls for Ban on ‘Payment for Order Flow’ in EU Stock Market
European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, on May 5, 2021. Yves Herman/Reuters
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LONDON—“Payment for order flow,” a practice critics say has fueled bouts of frenzied retail share trading on Wall Street, should be banned in the European Union, France’s stock market regulator said on Thursday.

In the United States, stockbrokers have touted for business among retail customers by offering zero commission services, with payment coming from sending the orders to a specific wholesale market maker for executing.