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Gary Gensler: SEC Is Considering Banning Payment For Order Flow
Summary: In an interview with Barron's published today, U.S. Securities and Exchange Commission Chairman Gary Gensler said that the agency is considering banning a practice called payment for order flow. Trading in Robinhood shares subsequently dropped, as payment for order flow has traditionally been responsible for the bulk of revenue. Payment for order flow, sometimes shortened ...
In an interview with Barron's published today, U.S. Securities and Exchange Commission Chairman Gary Gensler said that the agency is considering banning a practice called payment for order flow. Trading in Robinhood shares subsequently dropped, as payment for order flow has traditionally been responsible for the bulk of revenue.
Payment for order flow, sometimes shortened to PFOF, entails outsourcing the execution of stock trades to third parties.
Executives at stock and crypto trading app Robinhood have vowed to diversify its revenue sources in the coming months and expand its appeal to cryptocurrency users.
By Amy Liu
Tags: Gary Gensler,PFOF,SEC
Link: Gary Gensler: SEC Is Considering Banning Payment For Order Flow [Copy]
