The International Organization of Securities Commissions (IOSCO) has published a consultation report on order routing incentives. In the report IOSCO surveys regulatory conduct requirements on brokers to manage conflicts of interest associated with order routing and obtaining best execution, where applicable, and assesses how this interacts with market practices around order routing incentives. It does not consider the impact of venue fee models or dark liquidity on the efficiency of price formation and liquidity in markets, which has been more frequently examined by academics and regulatory bodies, including in earlier IOSCO reports (see for example IOSCO final report, Trading Fee Models and their Impact on Trading Behaviour (December 2013), IOSCO final report, Regulatory Issues Raised by Changes in Market Structure (December 2013), IOSCO Consultation Report, Issues Raised by Dark Liquidity (December 2010) and IOSCO final report, Principles for Dark Liquidity (May 2011).

View IOSCO consultation report on order routing incentives, 21 December 2016