Robinhood CEO and others in trading saga testify before Congress at GameStop hearing – as it happened
Executives from Reddit, Melvin Capital and Citadel speak in first public hearing on investigation
10.51pm GMT
With that, we close the six-hour hearing on the legal and financial ramifications of the massive buy-up of stocks that threatened to upend the US financial system.
Main issues brought up today include the gamification and ease of access for trading brought by Robinhood's app, and the mental health and financial implications of that. Repeatedly the suicide was mentioned of one Robinhood user who believed he had racked up hundreds of thousands of dollars in debt. Lawmakers say Robinhood needs better protections and customer service for users who need support.
10.32pm GMT
Alexandria Ocasio-Cortez also zeroed in on the payment for order flow financial model Robinhood uses in her questioning.
Earlier during questioning, Tenev revealed that more than half of Robinhood's revenue comes from payment for order flow, a controversial practice in which stockbrokers get a kickback for essentially selling the ability to execute trades. Ocasio-Cortez noted that the practice obscures the true costs of trade from users.
.@AOC asks if Mr. Tenev will voluntarily hand the proceeds of Payment for Order Flow to their customers?
Mr. Tenev basically says no, that it would lead to the end of free commissions
AOC: doesn't that mean it's not actually free? #GameStop #GameStopHearing pic.twitter.com/YQEsFJ6Ucr