Robinhood CEO Vlad Tenev Defends Payment for Order Flow, Saying 'It's Here to Stay'
Robinhood CEO Vlad Tenev defended payment for order flow in a CNBC interview, saying it's "inherently here to stay." PFOF describes the practice of routing trades through market-makers like Citadel Securities in return for a slice of the profits. PFOF accounts for only about 5% of Robinhood's current revenues. Most of its income now comes from net interest on customer balances. Transaction revenues including PFOF decreased 7% in the last quarter. While banned in some jurisdictions like the UK and EU, Tenev believes PFOF is "inherently here to stay" in the US market due to its role in Robinhood's and other brokers' business models.
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00:00 It's Benzinga and here's what's on the block.
00:02 Robinhood CEO Vlad Tena defended payment for order flow in a CNBC interview saying it's
00:07 inherently here to stay.
00:10 Payment for order flow describes a practice of routing trades through market makers like
00:13 Citadel Securities in return for a slice of the profit.
00:17 Payment for order flow accounts for about 5% of Robinhood's current revenues.
00:21 Most of its income now comes from net interest on customer balances.
00:25 Transaction revenues like payment for order flow decreased 7% in the last quarter.
00:29 While banned in some jurisdictions like the UK and EU, Vlad believes that payment for
00:33 order flow is inherently here to stay in the US market due to its role in Robinhood and
00:38 other brokers' business models.
00:39 For all things money, visit Benzinga.com.
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