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by manual89 1286 days ago
Wonder how Robinhood is going to survive a potential dilution of payments for orderflow if these proposals become reality.
2 comments

They will make the market:

> ...the company has quietly been laying the groundwork to become a standalone market maker,

> One way to reduce its reliance on PFOF is for Robinhood to actually match its own order flow instead of selling it to other brokers, company executives said. They even hinted during the roadshow meetings with investors that they too will be looking at getting into the business…

https://www.foxbusiness.com/markets/robinhood-ipo-twist-busi...

I thought the real value of Robinhood was that it was a substantial source of information about retail traders for its parent company.
Robinhood doesn't have a parent company?
I think what was meant is "Robinhood the app's parent company, also named Robinhood"?
Given the tone I suspect the person meant "Citadel". Which is a view I don't endorse, but see often.
Well you better go read some contemporary history then, because Ken Griffin has some luggage with Robinhood's name on it.
Retail orders are valuable precisely because they don't contain much information