Jordan Smith of CNBC.com brings you the top business news headlines of the day. On today’s program, CNBC Digital reports on SEC President Gary Gensler’s comments threatening Robinhood’s largest source of revenue. In addition, the United States is ending its longest war after nearly 20 years.
Robinhood tanks after the SEC presidency tell Barron that banning payment for order flow is a possibility
Shares of Robinhood fell on Monday amid several bad news for the brokerage app.
Shares of Robinhood fell 6.9% to $ 43.64 a share after stock exchange chairman Gary Gensler told Barron’s that the ban on the controversial payment practice of the stock market order flow is “on the table”.
Gensler said at the outset that the payment of the order flow (the back-end payment brokers they receive to direct customer transactions to market makers) has “an inherent conflict of interest.”
Payroll flow is one of Robinhood’s most important sources of revenue and the way the millennial-favored stock trading app is able to provide zero commission trading. Paying for order flow is a controversial practice that has caught the attention of the financial industry and Main Street regulatory authority.
When clarifications were requested, an SEC spokesman declined to comment on the story. Gensler has been saying for months that a total ban on payment of order flow is one of the options the regulator could introduce.
China bans children from playing online games for more than three hours a week
Children and teens under the age of 18 in China will only be able to play up to three hours a week of online video games, according to new rules released Monday by China’s National Press and Publications Administration.
The move is a further blow to the country’s gaming giants, from Tencent to NetEase, who have faced a regulatory attack this year in areas from antitrust to data protection. This has scared investors and affected the value of Chinese technology stocks.
According to a translated notice on the new rules, people under the age of 18 will be able to play video games one hour a day between 8pm and 9pm on weekends and public holidays. The agency billed the rules as a way to safeguard the physical and mental health of children.
Biden says the era of nation-building is over when it marks the end of the war in Afghanistan
President Joe Biden defended his entire decision to end the U.S. war in Afghanistan after 20 years of conflict, saying the era of major U.S. military deployments to rebuild other nations is over.
Biden’s direction came on Tuesday just 11 days before the twentieth anniversary of the September 11, 2001 terrorist attacks that precipitated U.S. intervention in Afghanistan.
“My fellow Americans, the war in Afghanistan is over,” Biden said from the White House. “I am the fourth president to have faced the question of whether and when to end this war.”
“When I presented my candidacy for the presidency I pledged to end this war and today I have respected that commitment. It was time to be honest with the American people, we no longer had a clear purpose in an open mission in Afghanistan.” added.