This topic will get out of my depth quickly, but here’s what I read:
“…another hedge fund, Citadel, has since bailed out. Citadel’s founder is Ken Griffin, who also founded Citadel Securities, a big investor in Robinhood that also works with TD Ameritrade and Charles Schwab.” (TheWeek)
So, there’s Citadel the hedge fund, which is closely aligned with Citadel Securities, which is a big investor in Robinhood.
The pay for order flow? No, it’s a standard practice. How Robinhood routes its orders is not standard, and they’ve been fined for being less-than-transparent about it.
Since they’re now quite clear about routing orders to Citadel, RH is acting legally, if not ethically.
I didn’t look for the disclosures themselves, but he’s basically saying that Robinhood was forced to be more clear about its dealings, and from that, they say they route orders to Citadel.
I can dig around for more info, if you’ve got specific info you’re looking for. I may or may not be able to find it.