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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 Barron’s that banning order flow payment is a possibility
Robinhood shares fell on Monday amid several bouts of bad news for the brokerage app.
Robinhood’s stock fell 6.9% to $ 43.64 per share after Securities and Exchange Commission chairman Gary Gensler told Barron’s that the ban on the controversial pay-for-flow practice of orders was “on the table”.
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 the Millennials Preferred Stock Trading app is able to provide commission-free trades. Paying for order flows 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 has said for months that an outright ban on payment for the flow of orders was among many options the regulator could introduce.
China to ban children from playing online games for more than three hours per week
Children and adolescents under the age of 18 in China 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 Publications Administration. China.
The move is yet another blow to the country’s gaming giants, from Tencent to NetEase, which have faced a wave of regulations this year in areas ranging from anti-monopoly to data protection. This scared off investors and reduced the value of Chinese tech stocks.
According to a translated opinion on the new rules, people under the age of 18 will be allowed to play video games for one hour a day between 8 p.m. and 9 p.m. on weekends and holidays. The agency touted the rules as a way to protect children’s physical and mental health.
Biden says era of American nation building is over as he marks end of war in Afghanistan
President Joe Biden has loudly 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 nations is over.
Biden’s speech on Tuesday came just 11 days before the 20th anniversary of the September 11, 2001 terrorist attacks that precipitated US intervention in Afghanistan.
“My fellow Americans, the war in Afghanistan is now over,” Biden said from the White House. “I am the fourth president to be faced with the question of whether and when to end 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, we did no more clear objective in an indefinite mission in Afghanistan, “he added.
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