Robinhood’s exchanges with Senator Warren preview congressional scrutiny.

Robinhood has responded to a prolonged record of queries from Senator Elizabeth Warren, Democrat of Massachusetts, about its companies techniques, and what went completely wrong throughout the height of the so-identified as meme inventory mania. The DealBook newsletter obtained the initially search on Wednesday at the broker’s 195-page reaction.

The inquiries and responses suggest Ms. Warren’s most likely focus as the Senate Banking Committee, of which she is a member, scrutinizes the fintech business and push for securities regulation. More quickly, the back-and-forth serves as a preview of possible themes at a listening to in the Dwelling on Thursday on the industry frenzy that will involve Vlad Tenev, Robinhood’s chief govt.

The letter to Ms. Warren from Robinhood reiterated the firm’s previous reviews about the funds constraints that forced it to halt trading in some stocks during the height frenzied investing in shares of GameStop, AMC and other individuals.

When pressed by Ms. Warren, Robinhood explained it did not “share customer details over and above shopper orders” with corporations like Citadel Securities, even though it did not say what was incorporated in these client orders. When requested how significantly funds it created from Citadel Securities and other monetary corporations, Robinhood referred to its public disclosures of payment for buy move contracts — the elaborate observe by way of which Robinhood can make its funds.

“Robinhood does not obtain any income from Citadel Securities other than rebates obtained by way of payment for purchase stream, all of which are disclosed publicly,” a spokesperson for Robinhood advised The Moments.

Kenneth C. Griffin, the chief of the hedge fund Citadel, will also testify Thursday at the Home hearing.

Robinhood also answered Ms. Warren’s inquiries about its use of necessary arbitration agreements, which can relinquish a user’s appropriate to consider the enterprise to court. Robinhood, which said it “is open up to examining its use of arbitration,” mentioned that only one of its 2020 situations resulted in a ultimate ruling by an arbiter, with an award for $.

“Robinhood promised to democratize investing, but hid facts about its prerogative to modify the policies by chopping off trades without recognize — and about customers’ incapacity to accessibility the courts if they imagine they’ve been cheated — behind dozens of web pages of legalese,” Ms. Warren stated. She could push the Securities and Trade Commission to ban pressured arbitration procedures, investigate Robinhood’s partnership with Citadel Securities, discover raising funds specifications for brokerage corporations and explain its regulations on industry manipulation.

“I’m likely to keep pushing regulators to use the whole assortment of their regulatory tools to assure the good procedure of our markets, especially for small traders,” Ms. Warren explained.