Retail Frenzy Is Dubious Gift For Market Middlemen

More worryingly, regulators may spoil the party. Market makers’ practice of paying brokers for orders has historically drawn criticism from U.S. lawmakers, even though it often seems to deliver lower prices for customers. The recent GameStop saga could make them finally clamp down on it, limiting the middlemen’s preferential access to trades. And any backlash against leveraged retail speculation could hurt volumes. The market makers’ spoils from the gold rush may only be fleeting.

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