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SEC may not ban payment for order flow, sending Robinhood higher

SEC is still weighing up options for controversial trading model, according to reports

Robinhood rose 22 September following a report that the Securities and Exchange Commission may not implement a ban on payment for order flow.

Payment for order flow is a compensation structure widely used by brokerages like Robinhood to process retail stock trades. It typically involves one brokerage routing trade orders to another firm for execution in exchange for payments, instead of directly to the stock exchanges.

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