Case No. 3:15-cv-02945
Charles Schwab is a retail brokerage that owes a duty of “Best Execution” to its customer clients. That means it is required to route its customers’ orders to the trading venue (i.e. stock exchange) that provides the best price improvement. But rather than find the best venue for its customers’ trades, it routed its customers’ trades almost exclusively to the venue that was most advantageous to Schwab, who had an agreement with UBS to send more than 90% of its order flow in exchange for hundreds of millions of dollars in kickbacks and fees, regardless of whether UBS provided “Best Execution” for its customers.
This class action litigation on behalf of Charles Schwab’s customers is ongoing.