Gensler zeroes in on Citadel Securities as SEC considers payment for order flow ban

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Gensler zeroes in on Citadel Securities as SEC considers payment for order flow ban

Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.Yahoo FinanceGensler zeroes in on Citadel Securities as SEC considers payment for order flow banBrian Cheung·ReporterSeptember 14, 2021, 12:17 PM·3 min readIn this article: Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.Oops!Something went wrong.Please try again later.

Wall Street’s top cop said Tuesday that the dominance of Citadel Securities in the business of routing order flow may not be giving retail investors the best deal.

U.S. Securities and Exchange Commission Chair Gary Gensler told the Senate Banking Committee that he’s concerned about Citadel Securities’ 47% market share over all U.S.-listed retail volume. Virtu Financial (VIRT), another wholesaler, controls about 25% to 30%.

“I’m pro competition, and I’m not sure the payment for order flow system really is the best competitive landscape,” Gensler said.

Gensler did not mention Citadel Securities by name, but footnotes in the SEC chair’s prepared remarks did.

The SEC has not ruled out the possibility of a full ban on payment for order flow, the practice of a brokerage (like Robinhood) passing on stock orders to a wholesaler (like Citadel Securities) to actually locate and execute.

When those wholesalers find a stock at a cheaper