FTX, a cryptocurrency exchange, has entered the stock market

FTX, a cryptocurrency exchange, has entered the stock market

Instead of adopting the payment for order flow (PFOF) technique used by Robinhood and other exchanges, FTX intends to route orders directly through the Nasdaq exchange. Brokerages are compensated for sending orders to market makers under PFOF, which opponents believe may create a conflict of interest because brokers may desire to route orders to institutions that enhance their earnings. Following the GameStop stock spike last year, the practice came under criticism.