(CNBC) Dan Gallagher, the chief legal officer at Robinhood, says he does not expect the Securities and Exchange Commission to ban the controversial payment for order flows.
Gallagher, who previously worked at the SEC, says the regulator will arrive at a conclusion that payment for order flows is a good thing for retail investors.
Payment for order flows has been one of Robinhood’s biggest sources of revenue, which also allows the company to provide zero-commission trading.
Payment for order flows has attracted scrutiny from the regulators, who promised to look into it and possibly ban it due to conflict of interest.
HOOD: NASDAQ is down -1.72%.
