Bryzgalova, Svetlana; Pavlova, Anna; Sikorskaya, Taisiya - 2022
We document rapid increases in (i) retail trading in options and (ii) payment for order flow, received by the U.S. retail brokerages from the so-called wholesalers in exchange for routing orders to them. Exploiting new flags in transaction-level data, we isolate wholesaler trades and build a...