The London Stock Exchange has become the first major European trading venue in more than 10 years to abolish the much-maligned system of paying rebates, following growing criticism about conflicts of interest.

The landmark move begins in November on the LSE’s Turquoise trading venue. It will put further pressure on brokers sending orders to exchanges that offer the largest rebates instead of trying to secure the best price and execution for clients — something mandated under the EU's new trading rulebook.