Citadel 'sKen Griffin discussed the payment-for-order-flow model andcryptocurrencies Monday.- He said he'd be "quite fine" with a ban on
payment for order flow , saying it's a cost to his firm. - As for crypto, he said his firm doesn't trade in it because of "regulatory uncertainty."
Citadel founder Ken Griffin said Monday he'd be "quite fine" with a $4 on payment for order flow - the controversial practice used by brokers such as $4 to provide free trading.
"$4 is a cost to me," he said at the Economic Club of Chicago. "So if you're going to tell me that by regulatory fiat that one of my major items expense disappears, I'm OK with that."
In the payment-for-order-flow model, market makers such as Griffin's
The practice has come under scrutiny this year after Robinhood halted buying of
Despite saying he'd be OK with a ban on the payment-for-order-flow model, Griffin praised Robinhood and other brokers for "democratizing finance in America" and said retail traders have been able to join the
"From my vantage point, we want to hold onto this democratization of finance that's taken place," he said. "If payment for order flow helps to maintain that as a reality, I think that's good for everybody."
When asked about cryptocurrencies such as bitcoin, Griffin made a jab at the $4. He also said his firm doesn't trade digital currencies because of the "regulatory uncertainty."
US Securities and Exchange Commission Chair Gary Gensler has said he's working with other government bodies to $4 for the new asset class. Thoughtful regulation around crypto will make it a smaller market with "less people involved who are just trying to make a quick buck," Griffin said.