Stock Market News

Brokerages jump on report SEC stops short of banning PFOF deals

2022.09.22 10:07

[ad_1]


© Reuters. FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

(Reuters) – Shares of retail brokerage Robinhood Markets Inc (NASDAQ:) and market maker Virtu Financial (NASDAQ:) jumped in early trading following a media report that the U.S. Securities and Exchange Commission (SEC) will stop short of banning payment-for-order-flow (PFOF).

The SEC may still enact other changes that make the practice less profitable, Bloomberg News reported on Thursday, citing people familiar with the matter. The regulator had mulled over the controversial practice for months that critics believe creates conflicts of interest. (https://

The SEC did not immediately respond to a Reuters request for comment.

Retail 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.

Shares of Robinhood Markets Inc, which makes around 75% of its revenue from PFOF, climbed 5%, while Virtu Financial added 9% in early trading.

PFOF drew new scrutiny last year when an army of retail investors went on a buying spree of “meme stocks” like GameStop (NYSE:) and AMC, squeezing hedge funds that had shorted the shares.

Many investors had purchased the shares using commission-free brokers like Robinhood that accept PFOF from a few powerful market-makers.

Britain, Canada, and Australia have already banned PFOF, while SEC Chairman Gary Gensler had suggested in August that the regulator could go that route.

[ad_2]

Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 82,130.00 2.20%
ethereum
Ethereum (ETH) $ 1,912.28 1.26%
tether
Tether (USDT) $ 0.999963 0.02%
xrp
XRP (XRP) $ 2.26 3.60%
bnb
BNB (BNB) $ 628.79 0.82%
solana
Solana (SOL) $ 124.75 2.88%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.694158 3.53%
dogecoin
Dogecoin (DOGE) $ 0.16656 4.15%
tron
TRON (TRX) $ 0.234391 6.59%
staked-ether
Lido Staked Ether (STETH) $ 1,911.05 1.40%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,990.97 2.10%
leo-token
LEO Token (LEO) $ 9.74 0.34%
the-open-network
Toncoin (TON) $ 3.55 2.40%
chainlink
Chainlink (LINK) $ 13.66 3.12%
usds
USDS (USDS) $ 1.00 0.00%
stellar
Stellar (XLM) $ 0.269292 1.77%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,284.53 1.74%
hedera-hashgraph
Hedera (HBAR) $ 0.184999 3.55%
pi-network
Pi Network (PI) $ 1.12 16.88%
avalanche-2
Avalanche (AVAX) $ 18.55 1.11%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 4.22%
sui
Sui (SUI) $ 2.27 3.06%
mantra-dao
MANTRA (OM) $ 6.92 0.92%
polkadot
Polkadot (DOT) $ 4.41 0.19%
litecoin
Litecoin (LTC) $ 88.33 4.79%
bitcoin-cash
Bitcoin Cash (BCH) $ 333.52 1.20%
bitget-token
Bitget Token (BGB) $ 4.62 4.14%
ethena-usde
Ethena USDe (USDE) $ 0.999911 0.02%
weth
WETH (WETH) $ 1,913.27 1.35%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999808 0.01%
hyperliquid
Hyperliquid (HYPE) $ 13.56 1.81%
whitebit
WhiteBIT Coin (WBT) $ 28.13 1.19%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,030.88 1.31%
monero
Monero (XMR) $ 207.89 1.46%
uniswap
Uniswap (UNI) $ 6.33 0.04%
susds
sUSDS (SUSDS) $ 1.04 0.06%
aptos
Aptos (APT) $ 5.30 1.18%
dai
Dai (DAI) $ 0.999996 0.02%
okb
OKB (OKB) $ 50.71 0.14%
near
NEAR Protocol (NEAR) $ 2.53 3.94%
pepe
Pepe (PEPE) $ 0.000007 6.26%
internet-computer
Internet Computer (ICP) $ 5.74 4.58%
mantle
Mantle (MNT) $ 0.805969 1.35%
gatechain-token
Gate (GT) $ 21.80 0.79%
ethereum-classic
Ethereum Classic (ETC) $ 17.52 2.77%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.86 2.07%
ondo-finance
Ondo (ONDO) $ 0.825025 4.50%
aave
Aave (AAVE) $ 169.55 3.40%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 82,129.00 2.24%