Robinhood Leads Brokerage Selloff as SEC Eyes Rules Overhaul (1)

Brokerage stocks came under renewed pressure this week after the US Securities and Exchange Commission said it’s weighing drastic changes to the way brokers process retail trade orders.

Shares of Robinhood Markets Inc. slumped 2.7% on Friday to close lower for a sixth consecutive session and at a fresh record low. Other stocks likely to be impacted by the SEC’s newly announced plan, including Charles Schwab Corp., Virtu Financial Inc. and Interactive Brokers Group Inc., also saw heavy selling, with each ending the week lower by at least 6%.

The group’s selloff accelerated on Friday after US inflation rose ...