Robinhood or sheriff of Nottingham? /
On January 28, 2021, just before dawn on the West Coast of the United States, Vladimir Tenev, CEO of the trading platform Robinhood, received a demand from the broker's clearinghouse urging Robinhood to remit three billion dollars in order to clear its clients' trades. Tenev had to act to...
| Main Authors: | , |
|---|---|
| Format: | eBook |
| Language: | English |
| Published: |
London :
Society for Case Research,
2021.
|
| Series: | SAGE business cases.
|
| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | On January 28, 2021, just before dawn on the West Coast of the United States, Vladimir Tenev, CEO of the trading platform Robinhood, received a demand from the broker's clearinghouse urging Robinhood to remit three billion dollars in order to clear its clients' trades. Tenev had to act to save Robinhood, but doing so would likely require taking actions contrary to Robinhood's mission of democratizing finance for all investors and risked antagonizing its customer base of small retail investors. The critical incident focuses on the business model of Robinhood, a model particularly reliant on Pay-for-Order Flow (PFOF) and the causes leading to the surge in liquidity requirements. Students are asked to evaluate and recommend short-term and long-term actions Robinhood could take to solve the crisis, become resilient to similar future crises, and the ramifications of taking these actions on Robinhood's strategic plans. |
|---|---|
| Physical Description: | 1 online resource. |
| ISBN: | 9781071945261 1071945262 |