Re:Robinhood S-1 IPO
by gruez on Thursday July 01, 2021 @03:40PM
(#27703611)
> What you are describing is market makers, not Robinhood. Quoting directly from the S-1:
Did i claim that robinhood is a market maker and/or participates in market making? I simply explained how market makers are making money in a non-nefarious way and why they might pay robinhood for order flow.
> I promise you that there isn't some magic altruism on the part of market makers
As explained in my prior comment there's no altruism involved. Retail orders are valuable because they're uninformed/non-toxic
>and then routing 40-60% of trades off-exchange. If it was simple matter of profiting off bid-ask spread: Force those orders through the exchanges instead of through dark pools.
Why bring in dark pools and "off-exchange"? The whole point of buying orderflow is to execute it yourself rather than letting anyone execute them.
Did i claim that robinhood is a market maker and/or participates in market making? I simply explained how market makers are making money in a non-nefarious way and why they might pay robinhood for order flow.
> I promise you that there isn't some magic altruism on the part of market makers
As explained in my prior comment there's no altruism involved. Retail orders are valuable because they're uninformed/non-toxic
>and then routing 40-60% of trades off-exchange. If it was simple matter of profiting off bid-ask spread: Force those orders through the exchanges instead of through dark pools.
Why bring in dark pools and "off-exchange"? The whole point of buying orderflow is to execute it yourself rather than letting anyone execute them.