At issue are payments that exchanges make to brokers to attract business. The study largely focused on retail-investor trades and whether these fees designed to boost market liquidity skew broker priorities.
The analysis comes amid a growing debate over exchanges' trading incentives and how these deals may create conflicts between brokers and their clients.
Mr. Battalio and Mr. Corwin said in an interview that they supported the idea of requiring brokers to pass rebate payments onto customers. "That way a broker would have no conflict of interest when routing an order," Mr. Battalio said. "It would be a better way to align a broker's incentives."
To read the full story, visit The Wall Street Journal Online.