The American Stock Exchange has suspended its exchange-administered payment for order flow in options, effective August 1 2001.
The exchange instituted the payment programme in July 2000 in response to competition.
It said the suspension would not affect payment for order flow programmes conducted by individual specialist firms.
Salvatore Sodano, Amex chairman and CEO, says: "We have consistently maintained that payment for order flow is not in the best interest of investors or the markets in general. As always, we will continue to monitor the competitive landscape and respond accordingly."
However, the exchange is reserving the right to re-instate the programme.