THE DAILY ENCRYPT

September 25, 2022

Trading Platform Robinhood Shares Rally 9% on SEC News

Robinhood shares traded at $10.92 at Thursday's open. The stock jumped following news that the SEC is set to allow Wall Street firms to continue...
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Robinhood shares traded at $10.92 at Thursday’s open. The stock jumped following news that the SEC is set to allow Wall Street firms to continue to make payment-for-order-flow deals.

Robinhood shares soared at the open on Thursday following news that the U.S. Securities and Exchange Commission (SEC) won’t limit it in making payment-for-order-flow (PFOF) deals.

The shares in the retail investing platform were up 9.3% Thursday. They traded at $10.92 on Thursday open, an increase of $9.92 at Wednesday’s close.

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SEC will not Robinhood from limit PFOF deals

The stock rose sharply following a report from Bloomberg saying the SEC won’t limit Wall Street firm’s making payment-for-order-flow deals, a major part of firms such as Robinhood and Charles Schwab’s business models. Robinhood can offer commission-free trading through this system.

Virtu Financial shares, which executes trades for Robinhood, rose almost 8% to the open.

The system is criticized for routing orders through large electronic trading firms that pay the broker and not offering retail traders the best prices. Robinhood previously settled with SEC for $65million over its failures to disclose PFOF activity and failing to “satisfy its duty to seek best reasonably available terms to implement customer orders.”

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Gary Gensler, chair of the SEC, had suggested an auction system to replace PFOF. In an effort to increase competition, and to ensure that retail traders receive a better price, this would allow trading firms to compete to fill similar orders to the options market.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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