In an attempt to make the stock market more fair for retail Gary Gensler and the SEC are considering an auction style system where market makers bid for retail flow. This is designed to discourage front-running which has been a large criticism of PFOF.
“Chairman Gary Gensler directed SEC staff last year to explore ways to make the stock market more efficient for small investors and public companies. While aspects of the effort are in varying stages of development, one idea that has gained traction is to require brokerages to send most individual investors’ orders to be routed into auctions where trading firms compete to execute them, people familiar with the matter said.
SEC staffers have begun floating plans with market participants in recent weeks, and Mr. Gensler is planning to detail some of the potential changes in a speech Wednesday, these people added.”