Elon Musk GRILLS Robinhood CEO For Screwing Over Users (GME stock)
Media learned about Robinhood’s agreement to pay more than $ 10 million in fines
Robinhood Investigated In Connection With Selling Orders To High Frequency Traders
According to Bloomberg, service is also being checked due to March access interruptions.
Robinhood profit in the II quarter was $ 180 million
Earlier, an investigation was initiated against the investment service in the case of selling client orders to high-frequency traders
American financial services company Robinhood Markets, Inc. intends to pay over $ 10 million in fine from the US Securities and Exchange Commission (SEC).
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This was reported by The Wall Street Journal, citing sources close to the investigation..
The payment of the fine, according to the WSJ, is related to the SEC investigation into the sale of orders to high-frequency traders.
A drop in the sea
Popular investment platform among millennials is under investigation in connection with the disclosure of sales of client orders to high-frequency traders.
High Frequency Trading (also known as High Frequency Trading or HFT Trading) is an algorithmic way to automatically trade quickly in financial markets..
This type of trading is not prohibited, but excessively risky.
However, this risk did not stop Robinhood from earning $ 180 million in the second quarter of 2020..
“We strive to maintain a constructive relationship with our regulators and to cooperate fully with them..
We do not discuss or comment on our communication with regulators, “Robinhood said in an interview with CNBC..
Series of failures
At the same time, according to Bloomberg reports, Robinhood is also being investigated in connection with the March disruption to the service..
The SEC and the Financial Services Regulatory Authority (FINRA) are reportedly investigating immediately.
According to Bloomberg, the SEC decided to pay attention to the activities of Robinhood in connection with the high flow of complaints from users of the service..
Most of the calls are related to a March technical issue with the service, which allegedly cost tens of thousands of dollars to Robinhood customers.
Whether the fine includes compensation for the March interruptions remains unknown.