Yesterday, the House Financial Services Committee held a hearing titled “Oversight of the Financial Industry Regulatory Authority” where the only witness was FINRA’s President/CEO Robert Cook.  In his written testimony, Mr. Cook covered numerous FINRA programs including FINRA360 (their self-imposed review of their own operations), cross-market surveillance initiatives (which have been working as effective deterrents against market manipulators) and an update on their enforcement cases.  While Mr. Cook’s written testimony was very impressive, there was surprisingly no mention of best execution investigations.  However, during the hearings question/answer session, Rep. Stephen Lynch (D-MA) did ask Mr. Cook a direct question about best execution (1:26 mark): (more…)

  It’s been a while since we wrote about the brokerage firm Robinhood so we wanted to check back in to see how they have been doing.  According to this Business Insider article with their co-founder Baiju Bhatt, business at the zero-commission brokerage firm is booming.  They now sport a $1.3 billion valuation and have over 2 million users and are enjoying  20% growth month over month in their margin loan business. So how does a firm that charges zero for commissions command a $1.3 billion valuation? In addition to the margin business, they receive payment for order flow from market makers on every (more…)


Aug, 2017