Robinhood Stock Drops After SEC Chairman Warns on Payment for Order Flow – WSJ

Shares of Robinhood Markets Inc. tumbled on Monday after the head of the Securities and Exchange Commission signaled that he was open to banning payment for order flow, a practice that accounts for most of the online brokerage’s revenues.

Robinhood shares closed 6.9% lower after Barron’s published an interview with SEC Chairman Gary Gensler in which he said a full prohibition of payment for order flow was “on the table” as part of a broader agency review.

Source: Robinhood Stock Drops After SEC Chairman Warns on Payment for Order Flow – WSJ