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Study and Regulation of Payment for Order Flow

This act requires the Securities and Exchange Commission (SEC) to study payment for order flow practices, which could impact how brokers handle your trades. The goal is to ensure you receive the best prices and that there are no hidden conflicts of interest that could cost you money. Following the study, the SEC may issue new rules that change how the market operates, potentially increasing transparency and protecting your investments.
Key points
The SEC will investigate whether brokers are getting the best prices for your trades and if payment for order flow affects trade execution quality.
The act aims to reveal how brokers disclose these payments to you and whether these disclosures are understandable.
After the study, the SEC may issue new rules, including prohibiting or limiting payment for order flow, potentially improving market fairness for investors.
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Expired
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Additional Information
Print number: 117_HR_4617
Sponsor: Rep. Sherman, Brad [D-CA-30]
Process start date: 2021-07-22
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To be added Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4617.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-07-22.

What are the main provisions?

Key points include:

  • The SEC will investigate whether brokers are getting the best prices for your trades and if payment for order flow affects trade execution quality.
  • The act aims to reveal how brokers disclose these payments to you and whether these disclosures are understandable.
  • After the study, the SEC may issue new rules, including prohibiting or limiting payment for order flow, potentially improving market fairness for investors.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sherman, Brad [D-CA-30].

What is the latest detailed status?

The latest detailed status is: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 28 - 22.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy