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Warren presses Citadel CEO Griffin about relationship with Robinhood, payment for order flow

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Warren said she is particularly interested in the potential conflict of interest between the hedge fund side of Citadel and Citadel Securities.
Sen. Elizabeth Warren (D-Mass.) is pressuring Citadel CEO Ken Griffin about the financial giant’s relationship with Robinhood, how Citadel benefits from their relationship and how to protect retail investors. In a letter sent Thursday, Warren said she is particularly interested in the potential conflict of interest between the hedge fund side of Citadel, which invested $2 billion in short-selling firm Melvin Capital for its GameStop losses, and Citadel Securities, a practitioner of „payment for order flow“ for Robinhood. „Both Robinhood and Citadel have denied that Citadel had any role in this decision – but Congress and the public deserve clarity on the process of and reasons for these decisions by Robinhood, which had a significant impact on many individual investors,“ Warren said in a six page letter. Warren also asked Griffin about the controversial, yet legal way that Robinhood and other brokers make money through trades despite dropping commissions: payment for order flow.

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