Robinhood shares open more than 9% higher on news that SEC will cancel plans to restrict PFOF trading

Robinhood shares soared at the open, rising 9.3% following news that the U.S. Securities and Exchange Commission (SEC) will not restrict Wall Street firms from doing pay-to-order (PFOF) transactions, The Block reported. Pay-to-order (PFOF) is a major part of the business models of companies like Robinhood and Charles Schwab, and the system allows Robinhood to offer commission-free trades. Robinhood previously settled with the SEC for $65 million for failing to disclose its PFOF activities and failing to "fulfill its obligation to seek the best reasonably available terms to execute customer orders."