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Alexandra Walker-Jones

Alexandra Walker-Jones

3 years ago

These are the 15 foods you should eat daily and why.

More on Cooking

Dr. Linda Dahl

Dr. Linda Dahl

3 years ago

We eat corn in almost everything. Is It Important?

Photo by Mockup Graphics on Unsplash

Corn Kid got viral on TikTok after being interviewed by Recess Therapy. Tariq, called the Corn Kid, ate a buttery ear of corn in the video. He's corn crazy. He thinks everyone just has to try it. It turns out, whether we know it or not, we already have.

Corn is a fruit, veggie, and grain. It's the second-most-grown crop. Corn makes up 36% of U.S. exports. In the U.S., it's easy to grow and provides high yields, as proven by the vast corn belt spanning the Midwest, Great Plains, and Texas panhandle. Since 1950, the corn crop has doubled to 10 billion bushels.

You say, "Fine." We shouldn't just grow because we can. Why so much corn? What's this corn for?

Why is practical and political. Michael Pollan's The Omnivore's Dilemma has the full narrative. Early 1970s food costs increased. Nixon subsidized maize to feed the public. Monsanto genetically engineered corn seeds to make them hardier, and soon there was plenty of corn. Everyone ate. Woot! Too much corn followed. The powers-that-be had to decide what to do with leftover corn-on-the-cob.

They are fortunate that corn has a wide range of uses.

First, the edible variants. I divide corn into obvious and stealth.

Obvious corn includes popcorn, canned corn, and corn on the cob. This form isn't always digested and often comes out as entire, polka-dotting poop. Cornmeal can be ground to make cornbread, polenta, and corn tortillas. Corn provides antioxidants, minerals, and vitamins in moderation. Most synthetic Vitamin C comes from GMO maize.

Corn oil, corn starch, dextrose (a sugar), and high-fructose corn syrup are often overlooked. They're stealth corn because they sneak into practically everything. Corn oil is used for frying, baking, and in potato chips, mayonnaise, margarine, and salad dressing. Baby food, bread, cakes, antibiotics, canned vegetables, beverages, and even dairy and animal products include corn starch. Dextrose appears in almost all prepared foods, excluding those with high-fructose corn syrup. HFCS isn't as easily digested as sucrose (from cane sugar). It can also cause other ailments, which we'll discuss later.

Most foods contain corn. It's fed to almost all food animals. 96% of U.S. animal feed is corn. 39% of U.S. corn is fed to livestock. But animals prefer other foods. Omnivore chickens prefer insects, worms, grains, and grasses. Captive cows are fed a total mixed ration, which contains corn. These animals' products, like eggs and milk, are also corn-fed.

There are numerous non-edible by-products of corn that are employed in the production of items like:

  1. fuel-grade ethanol

  2. plastics

  3. batteries

  4. cosmetics

  5. meds/vitamins binder

  6. carpets, fabrics

  7. glutathione

  8. crayons

  9. Paint/glue

How does corn influence you? Consider quick food for dinner. You order a cheeseburger, fries, and big Coke at the counter (or drive-through in the suburbs). You tell yourself, "No corn." All that contains corn. Deconstruct:

Cows fed corn produce meat and cheese. Meat and cheese were bonded with corn syrup and starch (same). The bun (corn flour and dextrose) and fries were fried in maize oil. High fructose corn syrup sweetens the drink and helps make the cup and straw.

Just about everything contains corn. Then what? A cornspiracy, perhaps? Is eating too much maize an issue, or should we strive to stay away from it whenever possible?

As I've said, eating some maize can be healthy. 92% of U.S. corn is genetically modified, according to the Center for Food Safety. The adjustments are expected to boost corn yields. Some sweet corn is genetically modified to produce its own insecticide, a protein deadly to insects made by Bacillus thuringiensis. It's safe to eat in sweet corn. Concerns exist about feeding agricultural animals so much maize, modified or not.

High fructose corn syrup should be consumed in moderation. Fructose, a sugar, isn't easily metabolized. Fructose causes diabetes, fatty liver, obesity, and heart disease. It causes inflammation, which might aggravate gout. Candy, packaged sweets, soda, fast food, juice drinks, ice cream, ice cream topping syrups, sauces & condiments, jams, bread, crackers, and pancake syrup contain the most high fructose corn syrup. Everyday foods with little nutrients. Check labels and choose cane sugar or sucrose-sweetened goods. Or, eat corn like the Corn Kid.

Joseph Mavericks

Joseph Mavericks

3 years ago

Apples Top 100 Meeting: Steve Jobs's Secret Agenda's Lessons

Jobs' secret emails became public due to a litigation with Samsung.

Steve Jobs & TIm Cook — Flickr/Thetaxhaven

Steve Jobs sent Phil Schiller an email at the end of 2010. Top 100 A was the codename for Apple's annual Top 100 executive meetings. The 2011 one was scheduled.

Everything about this gathering is secret, even attendance. The location is hidden, and attendees can't even drive themselves. Instead, buses transport them to a 2-3 day retreat.

Due to a litigation with Samsung, this Top 100 meeting's agenda was made public in 2014. This was a critical milestone in Apple's history, not a Top 100 meeting. Apple had many obstacles in the 2010s to remain a technological leader. Apple made more money with non-PC goods than with its best-selling Macintosh series. This was the last Top 100 gathering Steve Jobs would attend before passing, and he wanted to make sure his messages carried on before handing over his firm to Tim Cook.

In this post, we'll discuss lessons from Jobs' meeting agenda. Two sorts of entrepreneurs can use these tips:

  1. Those who manage a team in a business and must ensure that everyone is working toward the same goals, upholding the same principles, and being inspired by the same future.

  2. Those who are sole proprietors or independent contractors and who must maintain strict self-discipline in order to stay innovative in their industry and adhere to their own growth strategy.

Here's Steve Jobs's email outlining the annual meeting agenda. It's an 11-part summary of the company's shape and strategy.

Steve Jobs outlines Apple's 2011 strategy, 10/24/10

1. Correct your data

Business leaders must comprehend their company's metrics. Jobs either mentions critical information he already knows or demands slides showing the numbers he wants. These numbers fall under 2 categories:

Metrics for growth and strategy

  • As we will see, this was a crucial statistic for Apple since it signaled the beginning of the Post PC era and required them to make significant strategic changes in order to stay ahead of the curve. Post PC products now account for 66% of our revenues.

  • Within six months, iPad outsold Mac, another sign of the Post-PC age. As we will see, Jobs thought the iPad would be the next big thing, and item number four on the agenda is one of the most thorough references to the iPad.

  • Geographical analysis: Here, Jobs emphasizes China, where the corporation has a slower start than anticipated. China was dominating Apple's sales growth with 16% of revenue one year after this meeting.

Metrics for people & culture

  • The individuals that make up a firm are more significant to its success than its headcount or average age. That holds true regardless of size, from a 5-person startup to a Fortune 500 firm. Jobs was aware of this, which is why his suggested agenda begins by emphasizing demographic data.

  • Along with the senior advancements in the previous year's requested statistic, it's crucial to demonstrate that if the business is growing, the employees who make it successful must also grow.

2. Recognize the vulnerabilities and strengths of your rivals

Steve Jobs was known for attacking his competition in interviews and in his strategies and roadmaps. This agenda mentions 18 competitors, including:

  • Google 7 times

  • Android 3 times

  • Samsung 2 times

Jobs' agenda email was issued 6 days after Apple's Q4 results call (2010). On the call, Jobs trashed Google and Android. His 5-minute intervention included:

  • Google has acknowledged that the present iteration of Android is not tablet-optimized.

  • Future Android tablets will not work (Dead On Arrival)

  • While Google Play only has 90,000 apps, the Apple App Store has 300,000.

  • Android is extremely fragmented and is continuing to do so.

  • The App Store for iPad contains over 35,000 applications. The market share of the latest generation of tablets (which debuted in 2011) will be close to nil.

Jobs' aim in blasting the competition on that call was to reassure investors about the upcoming flood of new tablets. Jobs often criticized Google, Samsung, and Microsoft, but he also acknowledged when they did a better job. He was great at detecting his competitors' advantages and devising ways to catch up.

  • Jobs doesn't hold back when he says in bullet 1 of his agenda: "We further lock customers into our ecosystem while Google and Microsoft are further along on the technology, but haven't quite figured it out yet tie all of our goods together."

  • The plan outlined in bullet point 5 is immediately clear: catch up to Android where we are falling behind (notifications, tethering, and speech), and surpass them (Siri,). It's important to note that Siri frequently let users down and never quite lived up to expectations.

  • Regarding MobileMe, see Bullet 6 Jobs admits that when it comes to cloud services like contacts, calendars, and mail, Google is far ahead of Apple.

3. Adapt or perish

Steve Jobs was a visionary businessman. He knew personal computers were the future when he worked on the first Macintosh in the 1980s.

Jobs acknowledged the Post-PC age in his 2010 D8 interview.

Will the tablet replace the laptop, Walt Mossberg questioned Jobs? Jobs' response:

“You know, when we were an agrarian nation, all cars were trucks, because that’s what you needed on the farm. As vehicles started to be used in the urban centers and America started to move into those urban and suburban centers, cars got more popular and innovations like automatic transmission and things that you didn’t care about in a truck as much started to become paramount in cars. And now, maybe 1 out of every 25 vehicles is a truck, where it used to be 100%. PCs are going to be like trucks. They’re still going to be around, still going to have a lot of value, but they’re going to be used by one out of X people.”

Imagine how forward-thinking that was in 2010, especially for the Macintosh creator. You have to be willing to recognize that things were changing and that it was time to start over and focus on the next big thing.

Post-PC is priority number 8 in his 2010 agenda's 2011 Strategy section. Jobs says Apple is the first firm to get here and that Post PC items account about 66% of our income. The iPad outsold the Mac in 6 months, and the Post-PC age means increased mobility (smaller, thinner, lighter). Samsung had just introduced its first tablet, while Apple was working on the iPad 3. (as mentioned in bullet 4).

4. Plan ahead (and different)

Jobs' agenda warns that Apple risks clinging to outmoded paradigms. Clayton Christensen explains in The Innovators Dilemma that huge firms neglect disruptive technologies until they become profitable. Samsung's Galaxy tab, released too late, never caught up to Apple.

Apple faces a similar dilemma with the iPhone, its cash cow for over a decade. It doesn't sell as much because consumers aren't as excited about new iPhone launches and because technology is developing and cell phones may need to be upgraded.

Large companies' established consumer base typically hinders innovation. Clayton Christensen emphasizes that loyal customers from established brands anticipate better versions of current products rather than something altogether fresh and new technologies.

Apple's marketing is smart. Apple's ecosystem is trusted by customers, and its products integrate smoothly. So much so that Apple can afford to be a disruptor by doing something no one has ever done before, something the world's largest corporation shouldn't be the first to try. Apple can test the waters and produce a tremendous innovation tsunami, something few corporations can do.

In March 2011, Jobs appeared at an Apple event. During his address, Steve reminded us about Apple's brand:

“It’s in Apple’s DNA, that technology alone is not enough. That it’s technology married with liberal arts, married with the humanities that yields us the results that make our hearts sink. And nowhere is that more true that in these Post-PC devices.“

More than a decade later, Apple remains one of the most innovative and trailblazing companies in the Post-PC world (industry-disrupting products like Airpods or the Apple Watch came out after that 2011 strategy meeting), and it has reinvented how we use laptops with its M1-powered line of laptops offering unprecedented performance.

A decade after Jobs' death, Apple remains the world's largest firm, and its former CEO had a crucial part in its expansion. If you can do 1% of what Jobs did, you may be 1% as successful.

Not bad.

Karthik Rajan

Karthik Rajan

3 years ago

11 Cooking Hacks I Wish I Knew Earlier 

Quick, easy and tasty (and dollops of parenting around food).

My wife and mom are both great mothers. They're super-efficient planners. They soak and ferment food. My 104-year-old grandfather loved fermented foods.

When I'm hungry and need something fast, I waffle to the pantry. Like most people, I like to improvise. I wish I knew these 11 hacks sooner.

1. The world's best pasta sauce only has 3 ingredients.

You watch recipe videos with prepped ingredients. In reality, prepping and washing take time. The food's taste isn't guaranteed. The raw truth at a sublime level is not talked about often.

Sometimes a radical recipe comes along that's so easy and tasty, you're dumbfounded. The Classic Italian Cook Book has a pasta recipe.

One 28-ounce can of whole, peeled tomatoes, one medium peeled onion, and 5 tablespoons of butter. And salt to taste.

Combine everything in a single pot and simmer for 45 minutes, uncovered. Stir occasionally. Toss the onion halves after 45 minutes and pour the sauce over pasta. Finish!

This simple recipe fights our deepest fears.

Salt to taste! Customized to perfection, no frills.

2. Reheating rice with ice. Magical.

Most of the world eats rice. I was raised in south India. My grandfather farmed rice in the Cauvery river delta.

The problem with rice With growing kids, you can't cook just enough. Leftovers are a norm. Microwaves help most people. Ice cubes are the frosting.

Before reheating rice in the microwave, add an ice cube. The ice will steam the rice, making it fluffy and delicious again.

3. Pineapple leaf 

if it comes off easy, it is ripe enough to cut. No rethinking.

My daughter loves pineapples like her dad. One daddy task is cutting them. Sharing immediate results is therapeutic.

Timing the cut has been the most annoying part over the years. The pineapple leaf tip reveals the fruitiness inside. Always loved it.

4. Magic knife words (rolling and curling)

Cutting hand: Roll the blade's back, not its tip, to cut.

Other hand: If you can’t see your finger tips, you can’t cut them. So curl your fingers.

I dislike that schools don't teach financial literacy or cutting skills.

My wife and I used scissors differently for 25 years. We both used the thumb. My index finger, her middle. We googled the difference when I noticed it and laughed. She's right.

This video teaches knifing skills:


5. Best advice about heat

If it's done in the pan, it's overdone on the plate.

This simple advice stands out when we worry about ingredients and proportions.

6. The truth about pasta water

Pasta water should be sea-salty.

Properly seasoning food separates good from great. Salt depends is a good line.

Want delicious pasta? Well, then kind of a lot, to be perfectly honest.

7. Clean as you go

Clean blender as you go by blending water and dish soap.

I find clean as you go easier than clean afterwords. This easy tip is gold.

8. Clean as you go (bis)

Microwave a bowl of water, vinegar, and a toothpick for 5 minutes.

2 cups water, 2 tablespoons vinegar, and a toothpick to prevent overflow.

5-minute microwave. Let the steam work for another 2 minutes. Sponge-off dirt and food. Simple.

9 and 10. Tools,tools, tools

Immersion blender and pressure cooker save time and money.

Narrative: I experienced fatherly pride. My middle-schooler loves science. We discussed boiling. I spoke. Water doesn't need 100°C to boil. She looked confused. 100 degrees assume something. The world around the water is a normal room. Changing water pressure affects its boiling point. This saves energy. Pressure cooker magic.

I captivated her. She's into science and sustainable living.

Whistling is a subliminal form of self-expression when done right. Pressure cookers remind me of simple pleasures.

Your handiness depends on your home tools. Immersion blenders are great for pre- and post-cooking. It eliminates chopping and washing. Second to the dishwasher, in my opinion.

11. One pepper is plenty

A story I share with my daughters.

Once, everyone thought about spice (not spicy). More valuable than silk. One of the three mighty oceans was named after a source country. Columbus sailed the wrong way and found America. The explorer called the natives after reaching his spice destination.

It was pre-internet days. His Google wasn't working.

My younger daughter listens in awe. Strong roots. Image cast. She can contextualize one of the ocean names.

I struggle with spices in daily life. Combinations are mind-boggling. I have more spices than Columbus. Flavor explosion has repercussions. You must closely follow the recipe without guarantees. Best aha. Double down on one spice and move on. If you like it, it's great.

I naturally gravitate towards cumin soups, fennel dishes, mint rice, oregano pasta, basil thai curry and cardamom pudding.

Variety enhances life. Each of my dishes is unique.

To each their own comfort food and nostalgic memories.

Happy living!

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Nir Zicherman

Nir Zicherman

3 years ago

The Great Organizational Conundrum

Only two of the following three options can be achieved: consistency, availability, and partition tolerance

A DALL-E 2 generated “photograph of a teddy bear who is frustrated because it can’t finish a jigsaw puzzle”

Someone told me that growing from 30 to 60 is the biggest adjustment for a team or business.

I remember thinking, That's random. Each company is unique. I've seen teams of all types confront the same issues during development periods. With new enterprises starting every year, we should be better at navigating growing difficulties.

As a team grows, its processes and systems break down, requiring reorganization or declining results. Why always? Why isn't there a perfect scaling model? Why hasn't that been found?

The Three Things Productive Organizations Must Have

Any company should be efficient and productive. Three items are needed:

First, it must verify that no two team members have conflicting information about the roadmap, strategy, or any input that could affect execution. Teamwork is required.

Second, it must ensure that everyone can receive the information they need from everyone else quickly, especially as teams become more specialized (an inevitability in a developing organization). It requires everyone's accessibility.

Third, it must ensure that the organization can operate efficiently even if a piece is unavailable. It's partition-tolerant.

From my experience with the many teams I've been on, invested in, or advised, achieving all three is nearly impossible. Why a perfect organization model cannot exist is clear after analysis.

The CAP Theorem: What is it?

Eric Brewer of Berkeley discovered the CAP Theorem, which argues that a distributed data storage should have three benefits. One can only have two at once.

The three benefits are consistency, availability, and partition tolerance, which implies that even if part of the system is offline, the remainder continues to work.

This notion is usually applied to computer science, but I've realized it's also true for human organizations. In a post-COVID world, many organizations are hiring non-co-located staff as they grow. CAP Theorem is more important than ever. Growing teams sometimes think they can develop ways to bypass this law, dooming themselves to a less-than-optimal team dynamic. They should adopt CAP to maximize productivity.

Path 1: Consistency and availability equal no tolerance for partitions

Let's imagine you want your team to always be in sync (i.e., for someone to be the source of truth for the latest information) and to be able to share information with each other. Only division into domains will do.

Numerous developing organizations do this, especially after the early stage (say, 30 people) when everyone may wear many hats and be aware of all the moving elements. After a certain point, it's tougher to keep generalists aligned than to divide them into specialized tasks.

In a specialized, segmented team, leaders optimize consistency and availability (i.e. every function is up-to-speed on the latest strategy, no one is out of sync, and everyone is able to unblock and inform everyone else).

Partition tolerance suffers. If any component of the organization breaks down (someone goes on vacation, quits, underperforms, or Gmail or Slack goes down), productivity stops. There's no way to give the team stability, availability, and smooth operation during a hiccup.

Path 2: Partition Tolerance and Availability = No Consistency

Some businesses avoid relying too heavily on any one person or sub-team by maximizing availability and partition tolerance (the organization continues to function as a whole even if particular components fail). Only redundancy can do that. Instead of specializing each member, the team spreads expertise so people can work in parallel. I switched from Path 1 to Path 2 because I realized too much reliance on one person is risky.

What happens after redundancy? Unreliable. The more people may run independently and in parallel, the less anyone can be the truth. Lack of alignment or updated information can lead to people executing slightly different strategies. So, resources are squandered on the wrong work.

Path 3: Partition and Consistency "Tolerance" equates to "absence"

The third, least-used path stresses partition tolerance and consistency (meaning answers are always correct and up-to-date). In this organizational style, it's most critical to maintain the system operating and keep everyone aligned. No one is allowed to read anything without an assurance that it's up-to-date (i.e. there’s no availability).

Always short-lived. In my experience, a business that prioritizes quality and scalability over speedy information transmission can get bogged down in heavy processes that hinder production. Large-scale, this is unsustainable.

Accepting CAP

When two puzzle pieces fit, the third won't. I've watched developing teams try to tackle these difficulties, only to find, as their ancestors did, that they can never be entirely solved. Idealized solutions fail in reality, causing lost effort, confusion, and lower production.

As teams develop and change, they should embrace CAP, acknowledge there is a limit to productivity in a scaling business, and choose the best two-out-of-three path.

Ash Parrish

Ash Parrish

3 years ago

Sonic Prime and indie games on Netflix

Netflix will stream Spiritfarer, Raji: An Ancient Epic, and Lucky Luna.

Netflix's Geeked Week brought a slew of announcements. The flurry of reveals for The Sandman, The Umbrella Academy season 3, One Piece, and more also included game and game-adjacent announcements.

Netflix released a teaser for Cuphead season 2 ahead of its August premiere, featuring more of Grey DeLisle's Ms. Chalice. DOTA: Dragon's Blood season 3 hits Netflix in August. Tekken, the fighting game that throws kids off cliffs, gets an anime, Tekken: Bloodline.

Netflix debuted a clip of Sonic Prime before Sonic Origins in June and Sonic Frontiers in 2022.

Castlevania: Nocturne will follow Richter Belmont.

Netflix is reviving licensed games with titles based on its shows. There's a Queen's Gambit chess game, a Shadow and Bone RPG, a La Casa de Papel heist adventure, and a Too Hot to Handle game where a pregnant woman must choose between stabbing her cheating ex or forgiving him.

Riot's rhythm platformer Hextech Mayhem debuted on Netflix last year, and now Netflix is adding games from Devolver Digital. Reigns: Three Kingdoms is a card game that lets players choose the fate of Three Kingdoms-era China by swiping left or right on cards. Spiritfarer, the "cozy game about death" from 2020, and Raji: An Ancient Epic are coming to Netflix. Poinpy, a vertical climber from the creator of Downwell, is now on Netflix.

Desta: The Memories Between is a turn-based strategy game set in dreams and memories.

Snowman's Lucky Luna will also be added soon.

With these games, Netflix is expanding beyond dinky mobile games — it plans to have 50 by the end of the year — and could be a serious platform for indies that want to expand into mobile. It takes gaming seriously.

Theresa W. Carey

Theresa W. Carey

3 years ago

How Payment for Order Flow (PFOF) Works

What is PFOF?

PFOF is a brokerage firm's compensation for directing orders to different parties for trade execution. The brokerage firm receives fractions of a penny per share for directing the order to a market maker.

Each optionable stock could have thousands of contracts, so market makers dominate options trades. Order flow payments average less than $0.50 per option contract.

Order Flow Payments (PFOF) Explained

The proliferation of exchanges and electronic communication networks has complicated equity and options trading (ECNs) Ironically, Bernard Madoff, the Ponzi schemer, pioneered pay-for-order-flow.

In a December 2000 study on PFOF, the SEC said, "Payment for order flow is a method of transferring trading profits from market making to brokers who route customer orders to specialists for execution."

Given the complexity of trading thousands of stocks on multiple exchanges, market making has grown. Market makers are large firms that specialize in a set of stocks and options, maintaining an inventory of shares and contracts for buyers and sellers. Market makers are paid the bid-ask spread. Spreads have narrowed since 2001, when exchanges switched to decimals. A market maker's ability to play both sides of trades is key to profitability.

Benefits, requirements

A broker receives fees from a third party for order flow, sometimes without a client's knowledge. This invites conflicts of interest and criticism. Regulation NMS from 2005 requires brokers to disclose their policies and financial relationships with market makers.

Your broker must tell you if it's paid to send your orders to specific parties. This must be done at account opening and annually. The firm must disclose whether it participates in payment-for-order-flow and, upon request, every paid order. Brokerage clients can request payment data on specific transactions, but the response takes weeks.

Order flow payments save money. Smaller brokerage firms can benefit from routing orders through market makers and getting paid. This allows brokerage firms to send their orders to another firm to be executed with other orders, reducing costs. The market maker or exchange benefits from additional share volume, so it pays brokerage firms to direct traffic.

Retail investors, who lack bargaining power, may benefit from order-filling competition. Arrangements to steer the business in one direction invite wrongdoing, which can erode investor confidence in financial markets and their players.

Pay-for-order-flow criticism

It has always been controversial. Several firms offering zero-commission trades in the late 1990s routed orders to untrustworthy market makers. During the end of fractional pricing, the smallest stock spread was $0.125. Options spreads widened. Traders found that some of their "free" trades cost them a lot because they weren't getting the best price.

The SEC then studied the issue, focusing on options trades, and nearly decided to ban PFOF. The proliferation of options exchanges narrowed spreads because there was more competition for executing orders. Options market makers said their services provided liquidity. In its conclusion, the report said, "While increased multiple-listing produced immediate economic benefits to investors in the form of narrower quotes and effective spreads, these improvements have been muted with the spread of payment for order flow and internalization." 

The SEC allowed payment for order flow to continue to prevent exchanges from gaining monopoly power. What would happen to trades if the practice was outlawed was also unclear. SEC requires brokers to disclose financial arrangements with market makers. Since then, the SEC has watched closely.

2020 Order Flow Payment

Rule 605 and Rule 606 show execution quality and order flow payment statistics on a broker's website. Despite being required by the SEC, these reports can be hard to find. The SEC mandated these reports in 2005, but the format and reporting requirements have changed over the years, most recently in 2018.

Brokers and market makers formed a working group with the Financial Information Forum (FIF) to standardize order execution quality reporting. Only one retail brokerage (Fidelity) and one market maker remain (Two Sigma Securities). FIF notes that the 605/606 reports "do not provide the level of information that allows a retail investor to gauge how well a broker-dealer fills a retail order compared to the NBBO (national best bid or offer’) at the time the order was received by the executing broker-dealer."

In the first quarter of 2020, Rule 606 reporting changed to require brokers to report net payments from market makers for S&P 500 and non-S&P 500 equity trades and options trades. Brokers must disclose payment rates per 100 shares by order type (market orders, marketable limit orders, non-marketable limit orders, and other orders).

Richard Repetto, Managing Director of New York-based Piper Sandler & Co., publishes a report on Rule 606 broker reports. Repetto focused on Charles Schwab, TD Ameritrade, E-TRADE, and Robinhood in Q2 2020. Repetto reported that payment for order flow was higher in the second quarter than the first due to increased trading activity, and that options paid more than equities.

Repetto says PFOF contributions rose overall. Schwab has the lowest options rates, while TD Ameritrade and Robinhood have the highest. Robinhood had the highest equity rating. Repetto assumes Robinhood's ability to charge higher PFOF reflects their order flow profitability and that they receive a fixed rate per spread (vs. a fixed rate per share by the other brokers).

Robinhood's PFOF in equities and options grew the most quarter-over-quarter of the four brokers Piper Sandler analyzed, as did their implied volumes. All four brokers saw higher PFOF rates.

TD Ameritrade took the biggest income hit when cutting trading commissions in fall 2019, and this report shows they're trying to make up the shortfall by routing orders for additional PFOF. Robinhood refuses to disclose trading statistics using the same metrics as the rest of the industry, offering only a vague explanation on their website.

Summary

Payment for order flow has become a major source of revenue as brokers offer no-commission equity (stock and ETF) orders. For retail investors, payment for order flow poses a problem because the brokerage may route orders to a market maker for its own benefit, not the investor's.

Infrequent or small-volume traders may not notice their broker's PFOF practices. Frequent traders and those who trade larger quantities should learn about their broker's order routing system to ensure they're not losing out on price improvement due to a broker prioritizing payment for order flow.


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