The platforms’ digital tactics may create conflicts for retail traders by encouraging investors to trade more often or alter their trading strategy, Chair Gary Gensler said.
The self-directed platform began to roll out a new feature on Wednesday, but New Yorkers won’t have access to it.
Robinhood fell about 3.3% in early trading Tuesday after Gensler told Barron’s the day before that paying for order flow — where brokerages send customer orders to trading firms and receive payments in return — has “an inherent conflict of interest.”
Robinhood Markets Inc.’s Vlad Tenev’s effort to get brokerages and investment firms to settle stock trades in real time isn’t winning over Wall Street.
Robinhood Markets Inc., the online trading platform focused on making investors out of millennials, fell as much as 7.9% after raising $2.1 billion in an initial public offering priced at the bottom of a marketed range.
Robinhood’s post-IPO plans remain a mystery but its plans to hire hundreds of registered reps could lay the groundwork for wealth management services, some analysts speculate.
The regulator said the penalties reflected the “widespread and significant harm” suffered by the commission-free trading app’s customers due to supervisory issues and trading outages.
Robinhood Markets lost a bid to immediately stop Massachusetts securities regulators from enforcing a new rule that holds brokers accountable to a fiduciary standard of care.
U.S. Securities and Exchange Commission Chairman Gary Gensler sent his strongest signal yet that wild trading in GameStop Corp. could lead to new rules for online brokerages and firms that dominate the business of executing stock orders.
Robinhood Markets Inc., the popular trading app, has filed confidentially for an initial public offering with the U.S. Securities and Exchange Commission, according to people familiar with the matter.