SEC Charges Small Broker In Payment For Order Flow Scheme

HFA Padded
Mark Melin
Published on
Updated on

The US Securities and Exchange Commission (SEC) is fining a brokerage firm for receiving undisclosed payments it received to steer business in a particular direction. Robare Group charged for recommending certain types of investments No, the case is not related to high frequency trading, where such “payment for order flow” between brokerage firms and various HFT trading venues had existed undisclosed to investors.  This case involves Robare Group, a small Houston-based investment advisor who steered business to a mutual fund that was providing a rebate to the brokerage for every dollar invested. “Payments to investment advisers for recommending certain types…

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HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.