Jordan Smith of CNBC.com brings you today’s top business news headlines. On today’s show, CNBC Digital reports on comments from SEC Chairman Gary Gensler that threaten Robinhood’s biggest source of income. In addition, the United States ends its longest war after almost 20 years.
Robinhood backs down after SEC chairman tells Baron banning order flow payments is a possibility
Robinhood shares fell on Monday amid a lot of bad news for the brokerage app.
Robinhood stock fell 6.9% to $ 43.64 per share after Securities and Exchange Commission chairman Gary Gensler told Barron’s he was banning the controversial practice of paying for the flow of orders.
Gensler told the point of sale that payment for order flow – the back-end payment brokers receive to direct transactions from clients to market makers – has “an inherent conflict of interest.”
Paying for Order Flow is one of Robinhood’s biggest revenue streams and how millennials’ favorite stock trading app is able to deliver commission-free trades. Paying for Order Flow is a controversial practice that has caught the attention of the Financial Industry Regulatory Authority and Main Street.
When asked for clarification, an SEC spokesperson declined to comment for this story. Gensler said for months that a one-time payment ban for the flow of orders was one of many options the regulator could offer.
China to ban children from playing online games for more than three hours per week
In China, children and adolescents under the age of 18 will only be allowed up to three hours a week to play online video games, according to new rules released on Monday by the National Press and Public Administration. China edition.
The move is yet another blow to the country’s gaming giants, from Tencent to NetEase, which this year has faced a wave of regulations in areas ranging from anti-monopoly to data security. It shook investors and rocked the value of Chinese tech stocks.
According to a translated notice of the new rules, people under the age of 18 will be allowed to play video games for one hour between 8 p.m. and 9 p.m. between weekends and holidays. The agency introduced the rules as a way to protect children’s physical and mental health.
President Joe Biden has defended his decision to end the US war in Afghanistan after 20 years of conflict, saying the era of large US military deployments to rebuild other countries is over.
Biden’s speech on Tuesday came just 11 days before the 20th anniversary of the September 11, 2001 terrorist attacks that led to the US intervention in Afghanistan.
“My fellow Americans, the war in Afghanistan is now over,” Biden told the White House. “I am the fourth president to be faced with the question of ending this war. “
“When I was running for President, I made a pledge to end this war and today I honored that pledge. It was time to be honest with the American people, now we have a open mission. There was no clear objective in the mission. Afghanistan, “he said.