Robinhood CEO defends payment for order flow, says practice is here to stay
Summary
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 doesnt believe that the payment for order flow (PFOF) model of market-maker routing that the company incorporates in the U.S. is under threat. 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. And weve diversified the business quite a bit," including other areas like securities lending, margin, and subscriptions.
Classifications
industries
Fintech & Banking
applications
Accounting and Taxes
AskAI Classifications
Labels
Fintech Software
Trading Platform Software
Developer Tools
Linked Companies
Robinhood Markets, Inc.
$1M to $5M