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Is there a source you can cite for that? Why would anyone want retail investor order data? Especially since most of their orders execute immediately, so you can just get the trade data from the venue...



Rule 606 disclosure for the source. And it's not about the trade data it's the order itself. Second link is a very thorough explanation.

https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2...

https://www.google.com/url?sa=t&source=web&rct=j&url=http://...


> Why would anyone want retail investor order data?

Former market maker here.

Retail flow is low risk. If I buy $100mm of institutional flow, I could get a bunch of corporate hedging orders. Or I could make a single bet against George Soros. With retail, one tends to find lots of small orders. Even if there are some with high information, i.e. they're smart money and I'm going to lose money trading against them, they're small enough to be manageable.

Retail is also low information. At an old job, we bought a prominent retail broker's options flow. The number of in-the-money unexercised options that would come through that pipe was mind-blowing. (Today, whoever was buying Robinhood's flow likely got the same.)




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