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Citadel’s Ken Griffin defends controversial Wall Street practice, says firm would adapt if it were outlawed

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During Thursday’s GameStop hearing, Citadel Securities’ Ken Griffin defended a controversial method brokerages use to make money, and said his firm would adapt if new regulations prohibited the practice.

Lawmakers finally got a chance to press Robinhood, Citadel and Reddit chiefs about the GameStop trading controversy.

Members of Congress spent much of their time prodding about “payment for order flow,” a practice in which a brokerage receives payment from a market maker, known as a dealer, for directing the order to them.

This model is how Robinhood and other brokers are able to have commission-free trading.

Robinhood made more than $221 million from payment for order flow in the fourth…



Source cnbc.com

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