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TORONTO (Reuters) - Stock brokers in Canada cannot use marketmakers to execute trades for a fee, under a government rule that has restricted the growth of zero-commission trading platforms like Robinhood, whose booming business in United States was linked to wild swings in GameStop Corp and other “Reddit rally” stocks.
FILE PHOTO: Trading information for GameStop is displayed on the Robinhood App in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration
U.S. zero-commission platforms sell orders to wholesale marketmakers and generate revenue. Canadian brokers are required to fulfill trades on exchanges because it makes the stock market more transparent than splitting trades among market makers.
1. Stock Futures Slip After S&P 500 s Sixth Day of Gains
Stock futures pointed lower Tuesday following the S&P 500 s sixth straight day of gains amid signs that President Joe Biden and congressional Democrats were pushing forward with a $1.9 trillion coronavirus stimulus package.
Contracts linked to the Dow Jones Industrial Average fell 45 points, S&P 500 futures slipped 3 points and Nasdaq futures were down 7 points.
White House Press Secretary Jen Psaki told reporters Monday that Biden s stimulus plan probably will advance under a fast-tracked procedure Democrats could use to clear the aid package with just a simple majority vote in the Senate.
Shares of video game retailer GameStop tumbled nearly 20% Tuesday to their lowest levels since the start of a retail investor-led surge that echoed across Wall Street.