Robinhood stock drops after SEC chair tells Barron's banning PFOF is being considered

Shares of Robinhood Markets Inc. HOOD, -6.89% fell 2.5% successful premarket trading Tuesday, amid concerns implicit regulatory scrutiny surrounding the zero-commission trading platform's signifier of payment-for-order-flow. Securities and Exchange Commission Chairman Gary Gensler said successful an interrogation with "Barron's" connected Monday that a afloat prohibition of payment-for-order-flow (PFOF) "is connected the table." Payment-for-order-flow is wherever marketplace makers wage brokers to execute their orders, which has led to concerns among regulators that the signifier creates a struggle of involvement betwixt brokers and their customers. This signifier accounts for astir 80% of Robinhood's full revenue. MarketWatch and Barron's are portion of Barron's Group. Robinhood's stock, which went nationalist connected July 29, has rallied 24.2% implicit the past month, portion the S&P 500 SPX, +0.43% has gained 3.0%.