Robinhood spokeswoman Jacqueline Ortiz Ramsay said:
Source LinkedIn
We look forward to engaging with the SEC as they consider potential rules in these areas.
As a number of SEC regulations were approved over 10 years ago, predating the huge influence of social media, the impending change will come as a huge task for the regulators. It must find a way around tackling the power of smartphones and real-time trading, which have altered the stock market as we know it.
Gary Gensler stated before the House Financial Services Committee that:
Many of our regulations were largely written before these recent technologies and communication practices became prevalent. We need to evaluate our rules, and we may find that we need to freshen up our rule set.
Gensler has reportedly asked SEC employees to research public comment regarding ‘gamification’, with feedback likely to inform future policy adjustments. The agency will also tighten its grip on payment for order flow – a practice that the likes of Citadel Securities use to pay brokers for the ability to fulfil customer orders.
Referring to the matter, a Citadel Securities spokesman said:
We simply play by the rules of the road… If they choose to change the rules of the road — we need to drive on the left side versus the right side — that’s fine with us.
