WEBVTT - Vlad Tenev

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<v Speaker 1>Hi everyone, I'm Emily Chang and this is Bloomberg Studio

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<v Speaker 1>at one point. Oh it is one of the most

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<v Speaker 1>popular apps on the App Store, and possibly one of

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<v Speaker 1>the most despised. Robin Hood launched in April with a

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<v Speaker 1>state admission to democratize investing. It's named, of course, for

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<v Speaker 1>the legendary outlaw who stole from the rich to give

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<v Speaker 1>to the poor. Thanks to a slick interface, no commissions

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<v Speaker 1>or minimums, the idea is anyone anywhere can invest in

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<v Speaker 1>thousands of stocks, just like the big guys. But taking

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<v Speaker 1>on Wall Street has led to test after tests, from

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<v Speaker 1>outages to a sixty five million dollar fine from the SEC,

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<v Speaker 1>and then the perfect storm on January. This is unbelievable.

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<v Speaker 1>We're looking at anywhere from forty to eight hundred percent gains.

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<v Speaker 1>Traders drove the price of game Stop and several other

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<v Speaker 1>so called meme stocks up so high, so fast that

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<v Speaker 1>robin Hood faced a demand for billions of dollars to

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<v Speaker 1>offset risk. The company restricted buying on thirteen stock, including

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<v Speaker 1>game Stopped. Customers were furious, meme stocks plunged, and CEO

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<v Speaker 1>of lad ten Of had to answer to lawmakers. At

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<v Speaker 1>that moment, we would not have been able to post

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<v Speaker 1>the three billion in collateral. Robin Hood now faces even

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<v Speaker 1>more questions about its model and whether it's exposing largely

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<v Speaker 1>novice investors to undo risk. Here to answer those questions

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<v Speaker 1>on this special edition of Bloomberg Studio. At one point,

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<v Speaker 1>Oh robin Hood CEO lad ten of you and your

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<v Speaker 1>co founder by Jubat started robin Hood in part in

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<v Speaker 1>response to the Occupy Wall Street movement, which was filled

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<v Speaker 1>with angst against the financial system and then amplified on

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<v Speaker 1>social media. Do you see the game stop frenzy as

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<v Speaker 1>an echo of that? I think you're seeing a continuation

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<v Speaker 1>of a few things. Uh. I think if you look

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<v Speaker 1>at a lot of the anst after the last financial crisis,

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<v Speaker 1>people were very, very frustrated that the recovery went to

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<v Speaker 1>the wealthy. Uh, it went to institutions. And we we

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<v Speaker 1>built robin Hood to enable economic opportunity for everyone. We

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<v Speaker 1>wanted everyone to have access to the capital markets, which

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<v Speaker 1>has been one of the greatest wealth creation engines in

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<v Speaker 1>human history. So I think, um, what you're seeing now

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<v Speaker 1>is a movement by individuals to participate and become a

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<v Speaker 1>bigger and bigger force in the financial markets. Now both

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<v Speaker 1>of you are immigrants. You grew up in Bulgaria, your

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<v Speaker 1>parents worked at the World Bank. How has that shaped

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<v Speaker 1>your perspective. Yeah, so I immigrated from Bulgaria when I

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<v Speaker 1>was five years old. Obviously, when my my family and

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<v Speaker 1>I came to the US in the early nineties, we

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<v Speaker 1>were starting from nothing, so um. My dad was a

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<v Speaker 1>graduate student, my mom worked as a waitress and also

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<v Speaker 1>in one of the few remaining textile plants in the

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<v Speaker 1>US at the time. So I had the experience of

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<v Speaker 1>starting from from basically nothing. Also, in Bulgaria in the

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<v Speaker 1>mid nineties, the financial system effectively collapsed. There was a

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<v Speaker 1>period in n where the Bulgarian currency was going through

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<v Speaker 1>hyperinflation and you were seeing around two thousand percent annualized inflation.

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<v Speaker 1>So I think we have we we sort of assumed

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<v Speaker 1>in the US that we have the US dollar and

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<v Speaker 1>it's stable and it's this baseline that we can rely on.

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<v Speaker 1>But I think seeing my grandparents go through that experience

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<v Speaker 1>in Bulgaria where their pensions became essentially worthless, um, really

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<v Speaker 1>led me to appreciate that you have to be diversified

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<v Speaker 1>and being plugged into a global financial system where you

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<v Speaker 1>can diversify your wealth and spread your savings around and

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<v Speaker 1>not rely too much on any one tool or asset.

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<v Speaker 1>I think I got to experience that very very directly. Now.

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<v Speaker 1>You became Soul CEO in November, and in the first

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<v Speaker 1>three months in that role, you've navigated one of the

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<v Speaker 1>biggest crises in the company's history. You've testified before Congress.

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<v Speaker 1>What have you learned in those three months. There's the

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<v Speaker 1>phrase that there's some decades where nothing happens, and then

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<v Speaker 1>some weeks when decades happen, which I think, uh, I

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<v Speaker 1>think is representative of what we've been through at Robin Hood.

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<v Speaker 1>I think that uh now, not just Robin Hood, the

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<v Speaker 1>entire industry has seen investing go from something that's very

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<v Speaker 1>niche I mean it's something that you know, you'd hear

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<v Speaker 1>about on on TV, but a relatively small number of

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<v Speaker 1>people were actually interested in it. And uh now you're

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<v Speaker 1>seeing investing very much be a part of the cultural zeitgeist.

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<v Speaker 1>I mean, people are talking about it on social media,

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<v Speaker 1>we are having Congressional hearings about it. And I think

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<v Speaker 1>anything entering the cultural zeitgeist, anything new like that, there's

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<v Speaker 1>bound to be uh, some confusion. There's there's bound to

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<v Speaker 1>be some stress, and I think I just have to

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<v Speaker 1>keep it in perspective for myself that, um, this is

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<v Speaker 1>kind of what I signed up for. And any time

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<v Speaker 1>you're causing change in society and um and and kind

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<v Speaker 1>of up ending the status quo, it's it's probably not

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<v Speaker 1>gonna be the most comfortable process. But I'm curious how

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<v Speaker 1>testifying before Congress ranks on the nerves scale of the

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<v Speaker 1>hard things that CEOs have to do. Yeah, I mean

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<v Speaker 1>I hadn't done anything like that before. Um. The way

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<v Speaker 1>that I thought about it was, this is just a

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<v Speaker 1>great opportunity to tell the story of Robin hood, and

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<v Speaker 1>not just the events of January, but the broader story

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<v Speaker 1>of you know, retail investor participation in our financial system.

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<v Speaker 1>One of kind of the unsung untold stories is that

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<v Speaker 1>if you look at the recovery, UM, people that are

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<v Speaker 1>getting into the stock market are more diverse. There's a

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<v Speaker 1>lot more women entering the space than than ever before.

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<v Speaker 1>And generally, UM, we we've been a positive force and

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<v Speaker 1>people on Robin would have done quite well. I announced

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<v Speaker 1>the stat at the congressional hearing actually that if you

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<v Speaker 1>look at our aggregate customer activity, uh, the unrealized and

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<v Speaker 1>realized gains including crypto and stocks were over thirty five

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<v Speaker 1>billion dollars. So that's UM. That's you know, of February

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<v Speaker 1>billion dollars of value that is in customers pockets UH,

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<v Speaker 1>literally their smartphone. UM. And without Robin Hood that may

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<v Speaker 1>not have been possible, especially during such difficult times as

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<v Speaker 1>the pandemic. Now you said you got that call from

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<v Speaker 1>your clearing house at three thirty in the morning January

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<v Speaker 1>asking you to put up an extra three billion dollars.

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<v Speaker 1>Take me back to that moment and describe how that felt, UM,

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<v Speaker 1>knowing that you were going to have to make a

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<v Speaker 1>hard call. I think the team played it by the

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<v Speaker 1>books and I'm proud of how they handled it. And

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<v Speaker 1>of course, you know, we look back and we say, UM,

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<v Speaker 1>what are the things we could have done better? And

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<v Speaker 1>I'm sure there's there's many many things that we could

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<v Speaker 1>have done better, specifically with UM sort of how we

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<v Speaker 1>communicated with the decision and the days leading up to

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<v Speaker 1>it when we were seeing increased volatility UM. But I

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<v Speaker 1>think as far as the operations team and how they

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<v Speaker 1>were acting in a moment of UM very high stress,

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<v Speaker 1>I'm very proud of that team and their professionalism and

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<v Speaker 1>the way that they had to juggle, you know, making

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<v Speaker 1>the customers that wanted to buy Meme stocks happy, but

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<v Speaker 1>also protecting the financial system and are are much broader,

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<v Speaker 1>larger customer base. You decided to allow selling but not buying,

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<v Speaker 1>of thirteen securities, including game Stop, and you and I

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<v Speaker 1>spoke on that day, and I've never seen so much

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<v Speaker 1>anger in response to an interview on social media. Customers

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<v Speaker 1>were livid. They thought you were lying, They thought you

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<v Speaker 1>were in cahoots with Hedge Funds, They thought you were

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<v Speaker 1>just trying to protect yourself or the company. Did you

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<v Speaker 1>understand that anger or where that was coming from. I

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<v Speaker 1>think a lot of it was based on the false

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<v Speaker 1>premise of Robin Hood colluding with Hedge Funds or Melvin Capital.

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<v Speaker 1>There was even a rumor that the White House had

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<v Speaker 1>called us UH told us to shut down trading of

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<v Speaker 1>this stock. So I think there's a lot of misinformation.

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<v Speaker 1>What I wanted to do was dispel the misinformation. So

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<v Speaker 1>when I came to UM, when I came on your

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<v Speaker 1>show that day, and by the way, it was obviously

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<v Speaker 1>I was kind of running on fumes, trying to navigate

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<v Speaker 1>through the day to day of the issue raising the

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<v Speaker 1>several billion dollars, and obviously it was a very very

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<v Speaker 1>tricky situation. But I would say, as as angry as

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<v Speaker 1>people were that we um we prevented them from buying,

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<v Speaker 1>have we prevented customers from selling and capturing their gains

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<v Speaker 1>on the stock um? People would have been much more angry.

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<v Speaker 1>There would have been riots on the streets had we

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<v Speaker 1>stopped selling. So this idea that you know things would

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<v Speaker 1>have been better, I think it's just categorically falls. This

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<v Speaker 1>is my conversation with Robin Hood CEO Lad ten of

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<v Speaker 1>Up Next is robin Hood gamifying, investing, glorifying, gambling. President

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<v Speaker 1>Biden's pick to run the SEC says investigating that will

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<v Speaker 1>be one of his top priorities. What will that mean

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<v Speaker 1>for robin Hood? The CEO responds to his harshest critics,

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<v Speaker 1>I'm Emily Chang. This is Bloomberg Studio. At one point

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<v Speaker 1>out free trading is the industry standard. Now robin Hood

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<v Speaker 1>is then under scrutiny for gamifying that trading, and the

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<v Speaker 1>controversy has reopened this broader question of your role in society.

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<v Speaker 1>What do you say to critics who say you're democratizing addiction,

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<v Speaker 1>you're glorifying gambling. I reject the idea that investing in

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<v Speaker 1>the US capital markets is UH is gambling. UM. I

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<v Speaker 1>think we have a problem in this country, which is

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<v Speaker 1>that UM. Since the end of World War two, UM,

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<v Speaker 1>more and more of the stock the corporate stocks in

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<v Speaker 1>America have been UM have been owned by advisors or

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<v Speaker 1>other institutions or intermediaries. So at the end of World

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<v Speaker 1>War two, the majority of stocks were actually hold held

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<v Speaker 1>by households and UM. That's been going down over time.

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<v Speaker 1>And I think at the same time, you've seen really

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<v Speaker 1>really high concerns about income inequality and wealth inequality, and

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<v Speaker 1>these concerns threatened the fabric of our society. And I

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<v Speaker 1>think people agree that that's a problem, and we've got

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<v Speaker 1>a product here that UM has real potential to curb that.

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<v Speaker 1>So I think any attempt to prevent individuals from accessing

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<v Speaker 1>the markets directly is just UM it's just poorly directed.

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<v Speaker 1>I think, if anything, we should be looking at how

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<v Speaker 1>to encourage individuals from to invest in in the markets

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<v Speaker 1>directly and make it even easier and remove the remaining

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<v Speaker 1>barriers that that are in the way. That's said Gary Gensler,

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<v Speaker 1>President Biden's pick to run the SEC, has said he's

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<v Speaker 1>going to address the gamification of investing as one of

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<v Speaker 1>his top priorities. What will that mean for Robin Hood? Well,

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<v Speaker 1>I think, um, first of all, we're excited to work

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<v Speaker 1>with the incoming administration to um to clarify some of

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<v Speaker 1>these things. And uh, we we welcome people looking into it.

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<v Speaker 1>I think what they'll find is uh uh gamification is

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<v Speaker 1>uh is poorly defined. Um, It's not happening on robin Hood. UM.

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<v Speaker 1>I think people just want to invest in stocks, and

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<v Speaker 1>regardless of whether they do it on robin Hood or

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<v Speaker 1>any of the other brokers with zero commissions and low

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<v Speaker 1>account minimums, that that's now possible. So on the point

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<v Speaker 1>of gamification, your confetti animation, that confetti that pops when

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<v Speaker 1>users make certain trades, this is something that you've defended,

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<v Speaker 1>but now Bloomberg has reported it's something you're you're thinking

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<v Speaker 1>about potentially getting rid of. What is the status of that, Well,

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<v Speaker 1>I should say, UM, I'm a bit surprised by by

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<v Speaker 1>how much attention that the confetti animation has gotten. Um.

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<v Speaker 1>It's literally uh, an animation that comes up after you

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<v Speaker 1>make your first trade. You think by from reading from

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<v Speaker 1>reading some of the commentary that confetti's flying the flying

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<v Speaker 1>through the app all over the place. But um, the

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<v Speaker 1>way we thought about it is, um, the first time

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<v Speaker 1>someone becomes an investor, and we do have a lot

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<v Speaker 1>of first time investors on our product. Um, that first

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<v Speaker 1>moment of buying a stock and becoming an owner in

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<v Speaker 1>a company is a milestone moment that people should celebrate.

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<v Speaker 1>And so you'll see you know, confetti animation on your

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<v Speaker 1>first trade. You'll see us adding snowflakes if the markets

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<v Speaker 1>are closed on December or January one, you know, snowflakes

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<v Speaker 1>will will follow in the app. And there's a lot

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<v Speaker 1>of these delightful, uh graphical moments where um it's just

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<v Speaker 1>reflective of almost an artist signing their work. So does

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<v Speaker 1>that mean you're not getting rid of it anytimes soon? Well,

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<v Speaker 1>I don't want to talk about specific decisions. We we

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<v Speaker 1>don't want to make decisions um governed by sort of

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<v Speaker 1>what what the media says about robin Hood. But we're

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<v Speaker 1>always looking to improve the experience, and um, you know,

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<v Speaker 1>sometimes we might replace things with things that we feel

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<v Speaker 1>make customers happier and meet their needs. So we're we're

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<v Speaker 1>always looking looking to do that UM. And you know

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<v Speaker 1>it might mean certain changes to the the customer interface, UM,

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<v Speaker 1>and it might mean other things, but I guess just

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<v Speaker 1>be on the lookout for them. Now we're seeing a

0:15:45.000 --> 0:15:47.440
<v Speaker 1>prolonged sell off in the markets. I've seen a bunch

0:15:47.440 --> 0:15:51.400
<v Speaker 1>of people tweeting screenshots of their robin Hood notifications. It

0:15:51.520 --> 0:15:54.160
<v Speaker 1>was a blood bath for a lot of people, including

0:15:54.200 --> 0:15:58.040
<v Speaker 1>many of your customers who are only used to things

0:15:58.080 --> 0:16:02.440
<v Speaker 1>going up. If there's a correction, How worried are you

0:16:02.480 --> 0:16:05.600
<v Speaker 1>about your customers hurting? And if your customers are hurting

0:16:05.600 --> 0:16:09.160
<v Speaker 1>on a large scale, does that hurt robin Hood? We

0:16:09.160 --> 0:16:12.800
<v Speaker 1>we definitely uh. I want to make sure we align

0:16:12.800 --> 0:16:17.200
<v Speaker 1>ourselves with long term customer outcomes UM. And we've been

0:16:17.240 --> 0:16:21.720
<v Speaker 1>saying the entire time that investing is a habit, it's

0:16:21.760 --> 0:16:26.760
<v Speaker 1>a skill. UM. We encourage people to get started early,

0:16:26.840 --> 0:16:29.680
<v Speaker 1>but also build up these habits over a long period

0:16:29.680 --> 0:16:33.200
<v Speaker 1>of time. And I'm personally a huge believer in long

0:16:33.320 --> 0:16:37.400
<v Speaker 1>term investing, So I think a lot of the shorter

0:16:37.600 --> 0:16:42.480
<v Speaker 1>term trading makes its way into the public discourse because

0:16:42.480 --> 0:16:44.920
<v Speaker 1>it's it's more interesting and there's more to talk about

0:16:45.000 --> 0:16:49.920
<v Speaker 1>than someone just building up a diversified portfolio over time.

0:16:50.320 --> 0:16:53.320
<v Speaker 1>But that's how most of our customers use our products.

0:16:53.400 --> 0:16:57.560
<v Speaker 1>Most of our customers aren't buying and selling on a

0:16:57.680 --> 0:17:01.520
<v Speaker 1>daily basis. They're building up portfolio in and largely doing

0:17:01.600 --> 0:17:06.159
<v Speaker 1>buy and hold activities. That said, got a little bit

0:17:06.240 --> 0:17:10.520
<v Speaker 1>of a taste of how people react to a market

0:17:10.560 --> 0:17:15.160
<v Speaker 1>crash and in a correction, and we found that our customers,

0:17:15.200 --> 0:17:17.359
<v Speaker 1>because they were younger, looked at it as a buying

0:17:17.440 --> 0:17:21.200
<v Speaker 1>opportunity and as an opportunity to buy into the market

0:17:21.840 --> 0:17:25.439
<v Speaker 1>at historically low multiples. So we saw more deposits and

0:17:25.520 --> 0:17:35.399
<v Speaker 1>more purchasing of stocks than than ever before. You're listening

0:17:35.400 --> 0:17:38.200
<v Speaker 1>to my conversation with lad ten Of, CEO of robin

0:17:38.240 --> 0:17:41.040
<v Speaker 1>Hood coming up. Ten of paints his picture of the

0:17:41.119 --> 0:17:44.120
<v Speaker 1>future investor, not just in the US, but around the world.

0:17:44.440 --> 0:17:47.920
<v Speaker 1>He thinks investing should be as ubiquitous as online shopping,

0:17:48.240 --> 0:17:50.840
<v Speaker 1>but he's now got dozens of lawsuits to fight along

0:17:50.840 --> 0:17:54.080
<v Speaker 1>the way. I'm Emily Chang, this is Bloomberg Studio. At

0:17:54.080 --> 0:18:11.359
<v Speaker 1>one point, Oh, stay with us. Robin Hood has gotten

0:18:11.359 --> 0:18:14.400
<v Speaker 1>a lot of criticism for not having enough customer support,

0:18:14.480 --> 0:18:17.520
<v Speaker 1>and of course, you know, I'm reminded of the story

0:18:17.560 --> 0:18:22.240
<v Speaker 1>of twenty year old Alex Currns, who committed suicide in

0:18:22.359 --> 0:18:28.040
<v Speaker 1>June after seeing a negative balance of seven dollars on

0:18:28.119 --> 0:18:30.320
<v Speaker 1>his robin Hood account that turned out to be a mistake.

0:18:30.520 --> 0:18:33.679
<v Speaker 1>He emailed customer support, He got an automated response, and

0:18:33.720 --> 0:18:37.800
<v Speaker 1>by the time robin Hood had replied UM with the

0:18:37.960 --> 0:18:41.399
<v Speaker 1>actual situation, which was not as dire as he had thought,

0:18:41.600 --> 0:18:44.680
<v Speaker 1>it was too late. How much responsibility do you think

0:18:44.760 --> 0:18:48.199
<v Speaker 1>robin Hood bears in that situation. I think we bear

0:18:48.240 --> 0:18:53.240
<v Speaker 1>a responsibility for learning from it and making sure that

0:18:54.119 --> 0:18:58.439
<v Speaker 1>we respond and improve our products and our customer service

0:18:58.520 --> 0:19:04.080
<v Speaker 1>model to uh prevent cases like that from from from

0:19:04.160 --> 0:19:07.800
<v Speaker 1>being repeated UM, and certainly that's what we did. We

0:19:07.880 --> 0:19:14.119
<v Speaker 1>announced very shortly after UM Mr Karns is passing that

0:19:14.520 --> 0:19:19.400
<v Speaker 1>we are taking a series of extremely aggressive measures, including

0:19:19.440 --> 0:19:24.280
<v Speaker 1>product changes, UI changes, changes how we communicate buying power

0:19:24.320 --> 0:19:29.040
<v Speaker 1>and particularly negative buying power, and adding live phone support,

0:19:29.119 --> 0:19:34.040
<v Speaker 1>which we started out offering for high severity options trading cases,

0:19:34.119 --> 0:19:39.600
<v Speaker 1>but have since expanded to other cases like account security,

0:19:40.160 --> 0:19:45.360
<v Speaker 1>UM stock trading, and the response has been really awesome

0:19:45.400 --> 0:19:49.160
<v Speaker 1>and we're looking to expand it to all cases at

0:19:49.240 --> 0:19:52.520
<v Speaker 1>robin Hood. So let's get to your ip O. Bloomberg

0:19:52.520 --> 0:19:57.640
<v Speaker 1>has reported you're considering selling some shares directly to your customers.

0:19:58.040 --> 0:20:00.960
<v Speaker 1>Can you give us the status of that. UM. Clearly,

0:20:01.240 --> 0:20:04.520
<v Speaker 1>this is a business that requires capital, and I think

0:20:04.560 --> 0:20:08.320
<v Speaker 1>we've we've shown that we have a variety of means

0:20:07.760 --> 0:20:12.439
<v Speaker 1>to capitalize the business UM, and we see a huge

0:20:12.480 --> 0:20:15.600
<v Speaker 1>growth opportunity ahead of us, and I think it's a

0:20:15.720 --> 0:20:20.440
<v Speaker 1>seminal moment for the individual investor. UM. It's an opportunity

0:20:20.520 --> 0:20:24.359
<v Speaker 1>for us to to serve them and to continue to

0:20:24.400 --> 0:20:28.720
<v Speaker 1>elevate the individual investor in the eyes of the American public.

0:20:28.880 --> 0:20:32.399
<v Speaker 1>So that that's my focus, just squarely on customers and

0:20:32.480 --> 0:20:36.400
<v Speaker 1>delivering for them, and I think, UM, I think all

0:20:36.440 --> 0:20:39.159
<v Speaker 1>all the other things are just in support of that

0:20:39.359 --> 0:20:44.720
<v Speaker 1>core mission. You are facing dozens of lawsuits. What is

0:20:44.720 --> 0:20:46.960
<v Speaker 1>your intention on how to fight these and do you

0:20:47.040 --> 0:20:50.360
<v Speaker 1>have any concern that could impact your IPO trajectory. We're

0:20:50.359 --> 0:20:55.040
<v Speaker 1>gonna defend the firm vigorously because we we actually disagree

0:20:55.080 --> 0:20:59.080
<v Speaker 1>with the fundamental premise, and I think the facts will

0:20:59.119 --> 0:21:03.960
<v Speaker 1>come out and it'll bear It'll bear out that robin

0:21:04.000 --> 0:21:08.800
<v Speaker 1>Hood is a customer focused company that is operating with

0:21:08.920 --> 0:21:12.680
<v Speaker 1>the highest standards of integrity and UM and will continue

0:21:12.680 --> 0:21:15.560
<v Speaker 1>to do so. And if payment for order flow gets

0:21:15.600 --> 0:21:19.080
<v Speaker 1>taken away, do you have another option? I mean, I

0:21:19.119 --> 0:21:22.560
<v Speaker 1>think a lot of the payment for order flow concern

0:21:23.440 --> 0:21:28.000
<v Speaker 1>is more or less baseless. People don't understand the details

0:21:28.119 --> 0:21:31.520
<v Speaker 1>behind it, UM and so they're they're throwing up they're

0:21:31.560 --> 0:21:36.520
<v Speaker 1>throwing out a lot of these accusations UM, and it's complicated.

0:21:36.840 --> 0:21:41.040
<v Speaker 1>I understand that it's hard to sort of grasp how

0:21:41.080 --> 0:21:43.960
<v Speaker 1>payment for order flow works. We're doing our best to

0:21:44.000 --> 0:21:46.919
<v Speaker 1>try to demystify it. UM. We're doing a lot of

0:21:47.440 --> 0:21:49.560
<v Speaker 1>We're putting out a lot of content on our blog

0:21:49.640 --> 0:21:55.200
<v Speaker 1>and on social media that actually shows demonstrates that. UH.

0:21:55.320 --> 0:21:59.200
<v Speaker 1>We believe it's it's better for customers. People get price

0:21:59.240 --> 0:22:03.399
<v Speaker 1>improvement they wouldn't be able to get if we routed

0:22:03.440 --> 0:22:08.400
<v Speaker 1>their marketable orders to exchanges. UM. They get they get

0:22:08.440 --> 0:22:14.520
<v Speaker 1>a higher degree of certainty of execution. UM and UH

0:22:14.600 --> 0:22:19.240
<v Speaker 1>and our our model basically aligns incentives and makes it

0:22:19.320 --> 0:22:23.360
<v Speaker 1>so that all of our all of our market makers

0:22:23.400 --> 0:22:28.640
<v Speaker 1>pay the same rate, thereby removing conflicts of interest from

0:22:28.680 --> 0:22:33.480
<v Speaker 1>from the relationship. So UM I not only think it's

0:22:33.520 --> 0:22:37.960
<v Speaker 1>a good model, I think it's it's an innovative model,

0:22:38.080 --> 0:22:41.280
<v Speaker 1>and it's an example and probably a big part of

0:22:41.359 --> 0:22:46.120
<v Speaker 1>why the American financial markets have their world leading position.

0:22:46.400 --> 0:22:50.760
<v Speaker 1>It's it's that we've allowed UH innovative models to flourish

0:22:51.000 --> 0:22:54.679
<v Speaker 1>and not try to regulate them out of existence. You know,

0:22:54.720 --> 0:22:57.440
<v Speaker 1>I know you have big plans, a big vision beyond

0:22:57.520 --> 0:23:00.600
<v Speaker 1>the basic brokerage and the features you have. Now, what

0:23:00.640 --> 0:23:04.480
<v Speaker 1>are the biggest milestones ahead? What are your priorities. I

0:23:04.960 --> 0:23:10.280
<v Speaker 1>think you can look at our our vision broadly and

0:23:10.400 --> 0:23:14.320
<v Speaker 1>say that right now, about half of US households invests.

0:23:14.440 --> 0:23:17.919
<v Speaker 1>We'd like to get that number up to plus percent.

0:23:18.359 --> 0:23:22.920
<v Speaker 1>Investing should be as ubiquitous as shopping online. It should

0:23:22.920 --> 0:23:26.960
<v Speaker 1>just be something that people do. UM And Moreover, I

0:23:27.000 --> 0:23:31.280
<v Speaker 1>think there's an opportunity to expand that beyond the US.

0:23:31.320 --> 0:23:35.800
<v Speaker 1>There's no reason why the greatest financial system UH the

0:23:35.840 --> 0:23:39.160
<v Speaker 1>world has ever seen should be only available to Americans.

0:23:39.720 --> 0:23:42.800
<v Speaker 1>We can, we can, we can, we can make that

0:23:43.040 --> 0:23:47.280
<v Speaker 1>available UH globally, and not just to high net worth

0:23:47.320 --> 0:23:51.280
<v Speaker 1>individuals and the wealthiest one percent globally, but to the

0:23:51.320 --> 0:23:55.800
<v Speaker 1>mass market. UM and so I think that's a huge opportunity.

0:23:56.200 --> 0:23:58.119
<v Speaker 1>All right, Glad, thank you so much for joining us

0:23:58.119 --> 0:24:01.399
<v Speaker 1>A lad Ten of their Robin Hood CEO. Appreciate you

0:24:01.440 --> 0:24:09.720
<v Speaker 1>taking a time today. Bloomberg Studio one point I was

0:24:09.760 --> 0:24:12.600
<v Speaker 1>produced and edited by Kevin Hines. Our executive producer is

0:24:12.640 --> 0:24:16.640
<v Speaker 1>Alison Weiss. Our managing editor is Daniel Culberson, with production

0:24:16.680 --> 0:24:20.639
<v Speaker 1>assistants from Lauren Ellis and Mallory Abelhausen. I'm Emily Chang,

0:24:20.680 --> 0:24:23.879
<v Speaker 1>your host and executive producer. This is Bloomberg