RobinhoodSummary List Placement
- Robinhood is under investigation by the Securities and Exchange Commission over its deals with high-speed trading firms, The Wall Street Journal reported on Wednesday.
- The investigation is focused on Robinhood’s failure to fully disclose its practice of selling customers’ orders to market-makers, sources told The Journal.
- A settlement fine could exceed $10 million, but a deal is unlikely to be announced this month, the sources told the newspaper.
- Visit the Business Insider homepage for more stories.
The Securities and Exchange Commission is investigating Robinhood over its deals with high-speed trading businesses, The Wall Street Journal reported on Wednesday.
The investigation is in advanced stages and focuses on Robinhood’s failure to fully disclose its practice of selling customers’ orders to market-makers, sources familiar with the matter told The Journal. The brokerage could be forced to pay a fine of more than $10 million if it settles with the SEC, a source told the newspaper.
A fine hasn’t been negotiated between the two sides, one source said. A deal is unlikely to be announced this month, sources told The Journal.
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“We strive to maintain constructive relationships with our regulators and to cooperate fully with them,” a Robinhood representative told Business Insider.
Bloomberg reported on Monday that both the SEC and the Financial Industry Regulatory Authority were investigating Robinhood and its handling of a daylong service outage in early March. The regulatory bodies are said to be particularly interested in Robinhood’s lack of client response during the outage.
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