You know, when I think of the stock market, I really don’t think of Michael Bolton. But I guess Public, which refers to itself as “the investing social network,” was envious that Robinhood was getting all the press attention, so it hired Bolton to renew its 1989 hit “How’s It Supposed to Be? I’ll live without you. ” The new version is a lament over the order flow payment, which was recently the subject of outrage from Reddit and a point of inquiry at a House hearing.
Bolton is absolutely solemn at first, almost to the point of convincing me that this is a hostage-life proof video. But her voice is as beautiful as ever as she starts singing. It is not the first time that he has made fun of his image of the late 80s and early 90s as a singer in love; did something similar for Panera with “When a Man Loves a Woman”. In both cases, you received a paycheck. Y showed that he has a sense of humor. Good for him!
The practice Bolton laments is controversial, payment per order flow, which was recently the target of Reddit’s fury. A market maker pays to see a portion of retail investors’ trades; this could theoretically allow initial order fulfillment, but that is illegal and separately not very lucrative for the market maker. (Most of Reddit’s anger assumed that frontline retail operations were the full point of payment for order flow.) Payments are part of the reason why apps like Robinhood can offer trading for free.
And make no mistake, Public is targeting Robinhood. After the uproar around Robinhood during the GameStop debacle, Public announced that it would no longer participate in paying for the order stream. Last week, a day before Robinhood was questioned about order flow payment in a largely inconsistent House subcommittee hearing, Public announced that it had raised $ 220 million. The next day, Rep. Alexandria Ocasio-Cortez (D-NY) asked Robinhood CEO Vlad Tenev if he would commit to sending the proceeds from the order flow payment to his clients, a question that she avoided.
To further pressure Robinhood, Public offers to cover the transfer fees of its former brokerage itself.
In a second, more upbeat video, Bolton says, “Hello, beautiful! You did it. Congratulations on breaking out of your brokerage. “He also says that once you’re in Public, you can follow him. This is true! Here’s his portfolio. He hasn’t invested in Panera, it’s on his” Watch List “, but Amazon, Apple , Disney, Peloton, and Spotify are all part of your public portfolio. Well, investing in Spotify is probably a better way to make money than waiting for royalty payments.