Discuss whether the widespread adoption by retail brokerages such as Robinhood of a payment-for-order-flow model, along with the proliferation of dark pools, represents a fundamental restructuring of financial markets relative to the commission-based brokering model involving execution of orders through public exchanges.

Question (1400 words). Within the first US congressional hearing relating to the GameStop controversy, Robinhood’s business model was critiqued, while Warren Davidson, the Representative for Ohio, referenced the DTCC’s Project Ion, which explores the use of blockchain technology to improve the efficiency of payment and settlement functions within financial markets.

Discuss whether the widespread adoption by retail brokerages such as Robinhood of a payment-for-order-flow model, along with the proliferation of dark pools, represents a fundamental restructuring of financial markets relative to the commission-based brokering model involving execution of orders through public exchanges.

With reference to the GameStop controversy, discuss whether a blockchain based payment and settlement system (such as Project Ion or Project Whitney) might affect current market practices.