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☆ Robinhood CEO defends payment for order flow, says practice is 'here to stay'
▼ + stars: | 2023-12-01 | by ( Ryan Browne | ) www.cnbc.com time to read: +3 min

Vlad Tenev, co-founder and CEO of Robinhood, rings the opening bell at the Nasdaq on July 29, 2021. Robinhood CEO Vlad Tenev says he doesn't believe that the payment for order flow (PFOF) model of market-maker routing that the company incorporates in the U.S. is under threat. Speaking with CNBC, Tenev defended the practice of PFOF, saying that it's "inherently here to stay." PFOF is the practice of routing trades through market-makers like Citadel Securities in return for a slice of the profits. Critics say that brokers have an incentive to direct order flow to market makers offering PFOF arrangements over the interests of their clients.

Persons: Vlad Tenev, Tenev, Robinhood, we've, Ameritrade, Charles Schwab, Morgan Stanley Organizations: Nasdaq, CNBC, Citadel Securities, U.S . Securities, Exchange Commission, European Union Locations: U.S

☆ Securities traders are gathering in Washington, trying to figure out what the SEC is doing
▼ + stars: | 2023-10-11 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, June 24, 2011. The big topic: trying to figure out what the Securities and Exchange Commission is doing. These wholesalers may send the orders to exchanges, but often match the orders against their own internal order flow. Gallagher will also likely weigh in on payment for order flow as well. "I'm doing everything backwards, I'm leaving a trade group and going into politics, but sometimes you gotta step up."

Persons: There's, Gary Gensler, Gensler, Schwab, ETrade, Hester Peirce, Jonathan Kellner, Peirce, Hope Jarkowski, Rostin Behnam, Dan Gallagher, Matt Andresen, Gallagher, Jim, George Santos, Santos Organizations: U.S . Securities, Exchange, SEC, Securities, Securities and Exchange, Security Traders Association, Security Traders Association of New, Marriott Marquis, Intelligence, Citadel, Republican, MEMX, Democratic, NYSE, CFTC, Corporate, Headlands Technology, Congress Locations: Washington, Security Traders Association of New York, U.S, Long

☆ Will Smith-backed U.S. broker Public launches in the UK in first foray overseas
▼ + stars: | 2023-07-13 | by ( Ryan Browne | ) www.cnbc.com time to read: +5 min

Gabby Jones | Bloomberg | Getty ImagesAmerican stock brokerage startup Public launched its services in the U.K. Thursday, marking its first international expansion its launch in 2017. The app, backed by celebrities including Will Smith and skateboarding legend Tony Hawk, will offer U.K. users commission-free trading in over 5,000 U.S.-listed stocks during the country's regular trading hours. Bibas said that, for now, the U.K. is the only country Public is focusing on for its international expansion. In the future, it hopes to take learnings from its U.K. launch to open in other European markets. Freetrade, the U.K. brokerage startup, slashed its valuation by a whopping 65% last month to £225m in a crowdfunding round, citing a "different market environment."

Persons: Gabby Jones, Will Smith, Tony Hawk, AJ Bell, Hargreaves Lansdown, Leif Abraham, Public's, Abraham, Jannick Malling, PFOF, Dann Bibas, Bibas, he's Organizations: Bloomberg, Getty, Public, CNBC, Jannick, GameStop, Citadel Securities, European Union, Khepri Advisers, Financial, Authority, Accel, Tiger Global Locations: U.S, Abraham, Denmark, Germany, New York, Copenhagen, London, Amsterdam, Covid

☆ EU agrees deal on securities rules that includes ban on broker commission
▼ + stars: | 2023-06-29 | by ( Huw Jones | ) www.reuters.com time to read: +1 min

LONDON, June 29 (Reuters) - The European Union said on Thursday that member states and the European Parliament have reached a deal on updating the bloc's "MiFID" securities trading rules. The EU has been reviewing its securities trading rules to reflect advances in trading technology and also the departure of Britain from the bloc, presenting new competition to EU markets. "The agreement reached today imposes a general ban on 'payment for order flow' (PFOF), a practice through which brokers receive payments for forwarding client orders to certain trading platforms," a statement from the EU member states' council said. Under the deal, member states that already allow PFOF will be exempt from the ban provided it is only offered to clients in that member state. The deal, which needs formal rubber-stamping from the full parliament and EU states, also sets up 'consolidated tapes' that would give investors a snapshot of stock and bond prices on markets to help find the best deals.

Persons: Huw Jones, David Evans, Andrew Heavens Organizations: European Union, EU, Thomson Locations: EU

Robinhood vs. Coinbase: The Biggest DifferencesRobinhood Investing and Coinbase are both popular online investment platforms offering a vast range of investment choices for active traders. Robinhood Account FeaturesRobinhood's virtual library provides a variety of financial research on investing, options trading, and more. Coinbase Account FeaturesThe Basic Coinbase account offers things like trading, crypto rewards, interest rewards, digital storage, and mobile access. Compared to Coinbase, Robinhood is the better option for investors who want to merge traditional investments, such as stocks and ETFs, with more digital assets like cryptocurrencies. Although Robinhood has a significantly more limited crypto selection than Coinbase, Robinhood offers a large variety of investment options.

Persons: Robinhood, Roth, Coinbase Coinbase, Roth IRAs, Coinbase, There's, Louis Oberlander, Henry Rodriguez, Christopher Underwood Organizations: Robinhood, Chevron, Reading Chevron, Coinbase, Trade, Pro, Morningstar, Nasdaq, Better, Bureau, BBB, Gamestop, SEC, Advanced Trade, Inc, New York State Department of Financial Services, New, DFS Locations: cryptocurrencies, New York, Robinhood

☆ SEC's Gensler in congressional hot seat today over climate change and crypto
▼ + stars: | 2023-04-18 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

The House Financial Services Committee will hold a hearing on oversight of the Securities and Exchange Commission this morning. That's because SEC Chair Gary Gensler has aroused the ire of many in corporate America over his 50+ list of new regulatory proposals the SEC is scheduled to vote on this year. "Chair Gensler has identified a range of 50-55 regulatory priorities since the start of his tenure, and has already proposed twice as many rules as his predecessor in just half the time." "The vast majority of crypto tokens are securities," Gensler declared in his written testimony to the House Financial Services Committee. "SEC Chair Gensler is long overdue to testify before the House Financial Services Committee," Rep. French Hill (R.-Ark), Vice Chairman of the House Financial Services Committee, said in a statement released to CNBC.

☆ Wall Street lines up against SEC chair Gary Gensler on one of his most controversial proposals
▼ + stars: | 2023-03-31 | by ( Bob Pisani | ) www.cnbc.com time to read: +15 min

However, Gensler has claimed that pension funds and other institutional investors are not able to interact with that retail order flow. Auctions: the industry lines up against it The auction proposal has generated a large volume of comment letters to the SEC. He has said investors today need a better understanding of how well their trading orders are being executed. Theoretically, the SEC could vote on any or all of the four proposals in a shorter time period. This is just the start This is just the start of many proposals in front of the SEC.

☆ EU lawmakers set up clash with member states over share trade ban
▼ + stars: | 2023-03-01 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, March 1 (Reuters) - A panel of European Union lawmakers were set for a clash with member states after they backed a draft law banning brokers from earning fees in return for directing share trades to specific trading platforms. The European Parliament and the EU bloc's 27 member states must now thrash out a joint position that would become law. "A ban of PFOF is a huge disservice to retail clients and to the Capital Markets Union as a whole," said Markus Ferber, a committee member from Germany, where many PFOF brokers are based. The proposed ban is part of a draft law to update the bloc's securities rules known as MiFID. The committee also backed reducing off exchange "dark trading" favoured by big investors to 7% of total trading from 8% at present, and below the 10% which EU states want.

☆ EU states reject ban on 'payment-for-order-flow' share trades
▼ + stars: | 2022-12-20 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Dec 20 (Reuters) - European Union member states on Tuesday rejected plans to ban brokers earning fees in return for directing share trades to specific trading platforms, part of a sweeping stock market overhaul to compete better with post-Brexit London. But representatives from EU states on Tuesday rejected a bloc-wide ban. "The regulation leaves a discretion to member states to allow this practice only on their territory," a statement from member states said. EU states will now negotiate a final deal with the European Parliament on updating the securities rules, with further changes likely. Tapes should publish prices of executed trades, together with best bids and offers available at the time of a trade, as well as the European best bid and offers from the most competitive markets, EU states said.

☆ SEC’s $1.5 Billion Problem With Stock-Market Middlemen Has a Complex Solution
▼ + stars: | 2022-12-15 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Securities and Exchange Commission Chair Gary Gensler has voiced concerns that the current system for executing individual investors’ equity trades is rife with conflicts of interest. The Securities and Exchange Commission believes small investors could pocket about $1.5 billion a year from better trade execution. The question is whether someone else’s wallet could lighten by that amount. A new series of SEC rule proposals are meant to address problems with equity market structure for investors, particularly for small investors when it comes to the practice of payment for order flow, or PFOF. That is when a brokerage such as Robinhood Markets or Charles Schwab sends retail orders to a wholesale market-maker such as Citadel Securities or Virtu Financial and collects payments.

☆ SEC Chair Gary Gensler tees up changes to how the stock market operates
▼ + stars: | 2022-12-13 | by ( Bob Pisani | ) www.cnbc.com time to read: +8 min

These wholesalers may send the orders to exchanges, but often match the orders against their own internal order flow. However, Gensler has claimed that pension funds and other institutional investors are not able to interact with that retail order flow. Execution quality disclosure Market participants are required to submit monthly reports indicating how well they are executing client orders. Gensler has said investors today need a better understanding of how well their trading orders are being executed. Gensler's broad agenda The proposals on market structure are part of a broad agenda Gensler has undertaken this year.

☆ EU wrestles with Payment for Order Flow share trading rules
▼ + stars: | 2022-11-17 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Nov 17 (Reuters) - European Union states edged closer on Thursday to ditching a proposed ban on brokers earning fees in return for directing stock trades to specific trading platforms. The United States is considering whether curbs are needed for PFOF while the UK has already banned it. The EU ban was proposed in a draft law by the EU's executive European Commission updating the bloc's MiFID II securities law, with EU states and the European Parliament having final say. The Federation of European Securities Exchanges (FESE) said discussions on PFOF and consolidated tape risk "cementing fragmentation and opacity" in markets. However, Huebner said competitiveness of EU markets is essential given competition from Britain and the United States.

☆ Tiger Global-backed unicorn trading app Public.com set to expand into the European market in 2023 and make acquisitions
▼ + stars: | 2022-11-03 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +2 min

New York-based trading app Public.com is set to launch in the European market in 2023. The startup, which is valued at $1.2 billion, is backed by Tiger Global and a string of celebrities. Public's shift into the European market comes as talks to acquire Dutch counterpart Bux collapsed. Public.com, a US trading app backed by Tiger Global and a string of high-profile celebrities, is set to enter into the European market next year. The move comes as talks to acquire European counterpart Bux collapsed, a source familiar with the matter said.

☆ Public.com, an investing app backed by Will Smith and Maria Sharapova, is in talks to acquire Dutch trading startup Bux
▼ + stars: | 2022-09-28 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +3 min

Investing app Public.com is in talks to acquire Dutch trading startup Bux, sources say. Bux was valued at an estimated $320 million to $480 million in 2021, but the expected deal price is lower. Investing app Public.com is in talks to acquire Dutch stock trading startup Bux, according to two sources with knowledge of the discussions. New York-based Public has been in active talks with Bux for two months, the sources said. Bux has never stated its valuation but was valued between $320 million and $480 million at its 2021 funding round, according to Dealroom estimates.

☆ Brokerages jump on report SEC stops short of banning PFOF deals
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterRetail brokers route most customer orders via wholesale brokers than exchanges, as wholesalers generally offer a slightly better price. Most retail brokers also accept rebates, or payments, from wholesalers in lieu of orders. read moreShares of Robinhood Markets Inc , which makes around 75% of its revenue from PFOF, climbed 5%, while Virtu Financial (VIRT.O) added 9% in early trading. Britain, Canada, and Australia have already banned PFOF, while SEC Chairman Gary Gensler had suggested in August that the regulator could go that route. Register now for FREE unlimited access to Reuters.com RegisterReporting by Mehnaz Yasmin and Medha Singh in Bengaluru; editing by Uttaresh.VOur Standards: The Thomson Reuters Trust Principles.

It's important to make sure you can trust an investment app before you start using it. See Insider's guide to the best investment apps for beginners »Get the latest tips you need to manage your money — delivered to you biweekly. Before you start placing trades, you should have a sense of whether you can trust an investment app with your money. Here are more details on the warning signs to look out for when searching for an investment app. It's not transparent about how it makes moneyMost investment apps offer fee transparency and/or disclosures that detail where their compensation comes from.

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