7 ms·

Is there a source for the 40% figure? It seems to allude that the fund in question is Citadel.

briankelly 6y ago
Not revenue, but RH publishes their order flow percentages, which shows Citadel is at the top. Here's one from last year: https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%20Rule%20606A%20and%20607%20Disclosure%20Report%20Q1%202020.pdf https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2...
hntrader 6y ago
Yeah it must be, they gave funds to Melvin Capital which took a beating on GME, and make money off Robinhood's customer flow.
- tomjakubowski 6y ago
  Citadel the hedge fund and Citadel the market maker are separate companies.
  - tylerhou 6y ago
    They do share ownership though. But the alleged conspiracy above is unlikely for other reasons.
- whimsicalism 6y ago
  Giving funds to Melvin so they can close their short != having a short position in GME There are like 30 comments getting this confused in this thread.
  - briankelly 6y ago
    This sounds a little pedantic to me. Citadel has exposure to a short position in GME due to their deal.
    - whimsicalism 6y ago
      > Citadel has exposure to a short position in GME due to their deal No, they don't. It's not pedantic - Citadel literally does not have a short position or exposure to a short position in GME.
      - briankelly 6y ago
        If you lend money to someone, especially someone on the brink of insolvency, then you are buying whatever they are. Of course, Citadel can be on both or any number sides but they still take on exposure in that direction.
        whimsicalism 6y ago
        You're missing that they lent the money specifically so they were no longer exposed to the short position.
        briankelly 6y ago
        Yeah this is the central argument and I don't think we have a clear answer yet.
alexggordon 6y ago
First, I believe that number comes from this article[0], which doesn't tell the whole story. Did some research and found some more info with the help of this article[1]. In Q1, Citadel paid $12,583,220.60 to fulfill orders from Robin Hood[2]. I can't put together the total percentage of their order fulfillment revenue, but this website seems to suggest 91 million[3], but if you add up the totals from[2] they don't sum to 91 million--so I can't quite determine the percentage of revenue it works out to, but it appears Citadel is their biggest order fulfillment client. [0] https://www.bloomberg.com/news/articles/2018-10-15/robinhood-gets-almost-half-its-revenue-in-controversial-bargain-with-high-speed-traders https://www.bloomberg.com/news/articles/2018-10-15/robinhood... [1] https://fortune.com/2020/07/08/robinhood-makes-millions-selling-your-stock-trades-is-that-so-wrong/ https://fortune.com/2020/07/08/robinhood-makes-millions-sell... [2] https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%20Rule%20606A%20and%20607%20Disclosure%20Report%20Q1%202020.pdf https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2... [3] https://www.businessofapps.com/data/robinhood-statistics/ https://www.businessofapps.com/data/robinhood-statistics/

Not revenue, but RH publishes their order flow percentages, which shows Citadel is at the top. Here's one from last year: https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%20Rule%20606A%20and%20607%20Disclosure%20Report%20Q1%202020.pdf https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2...

hntrader 6y ago

Yeah it must be, they gave funds to Melvin Capital which took a beating on GME, and make money off Robinhood's customer flow.

tomjakubowski 6y ago
Citadel the hedge fund and Citadel the market maker are separate companies.
- tylerhou 6y ago
  They do share ownership though. But the alleged conspiracy above is unlikely for other reasons.
whimsicalism 6y ago
Giving funds to Melvin so they can close their short != having a short position in GME There are like 30 comments getting this confused in this thread.
- briankelly 6y ago
  This sounds a little pedantic to me. Citadel has exposure to a short position in GME due to their deal.
  - whimsicalism 6y ago
    > Citadel has exposure to a short position in GME due to their deal No, they don't. It's not pedantic - Citadel literally does not have a short position or exposure to a short position in GME.
    - briankelly 6y ago
      If you lend money to someone, especially someone on the brink of insolvency, then you are buying whatever they are. Of course, Citadel can be on both or any number sides but they still take on exposure in that direction.
      - whimsicalism 6y ago
        You're missing that they lent the money specifically so they were no longer exposed to the short position.
        briankelly 6y ago
        Yeah this is the central argument and I don't think we have a clear answer yet.

alexggordon 6y ago

First, I believe that number comes from this article[0], which doesn't tell the whole story. Did some research and found some more info with the help of this article[1]. In Q1, Citadel paid $12,583,220.60 to fulfill orders from Robin Hood[2]. I can't put together the total percentage of their order fulfillment revenue, but this website seems to suggest 91 million[3], but if you add up the totals from[2] they don't sum to 91 million--so I can't quite determine the percentage of revenue it works out to, but it appears Citadel is their biggest order fulfillment client. [0] https://www.bloomberg.com/news/articles/2018-10-15/robinhood-gets-almost-half-its-revenue-in-controversial-bargain-with-high-speed-traders https://www.bloomberg.com/news/articles/2018-10-15/robinhood... [1] https://fortune.com/2020/07/08/robinhood-makes-millions-selling-your-stock-trades-is-that-so-wrong/ https://fortune.com/2020/07/08/robinhood-makes-millions-sell... [2] https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%20Rule%20606A%20and%20607%20Disclosure%20Report%20Q1%202020.pdf https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2... [3] https://www.businessofapps.com/data/robinhood-statistics/ https://www.businessofapps.com/data/robinhood-statistics/