Q&A · ESMA
Payment for order flow (PFOF) prohibition and OTC execution of client orders
Answered
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In a Commission answer, the ban on receiving payment for order flow in Article 39a MiFIR applies to OTC execution as well as to trades on trading venues, given MiFIR's investor protection and best-execution aims and the broad definition of execution venue.
Details
| Reference | ESMA_QA_2559 |
|---|---|
| Issuer | ESMA |
| Published | 3 Mar 2026 |
| Answered | 3 Mar 2026 |
| Submitted | 3 Jun 2025 |
| ESMA topics | Inducements |
Provisions it relates to
- Article 39a MiFIR · Prohibition of receiving payment for order flowESMA rulebook
- MiFIR (whole act)Explicit reference