Payment for order flow is a key part of the company's business model.
The Securities and Exchange Commission may make rule changes that could lower the profitability of the practice, but they won't ban payment for order flow.
The shares of the company were up in the morning.
Payment for order flow is a controversial practice that allows market makers and firms to split profits between retail customers. It is a key source of revenue for Robinhood and other low-cost brokerage firms.
SEC Commissioner Gary Gensler questioned if the payment relationships between market makers and broker dealers was hurting the execution price for customer trades.
We have moved to zero commission, but it doesn't mean it's free. There is still money under these applications. It doesn't mean that it's always the best execution.
The SEC did not respond to questions.
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