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Robinhood Financial, LLC, is a wholly-owned subsidiary of Robinhood Markets, Inc. The US-based company provides brokerage and related financial services.
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| Basic information | |
|---|---|
| Founded | 2012 |
| Legal structure | Subsidiary |
| Industry | Financial Services |
| Official website | http://robinhood.com/ |
Public sphere
January 2021 restrictions on customer trading
On January 28, 2021, Robinhood systems restricted customer trading in certain securities for companies with heightened stock volatility,[1] including GameStop,[2] AMC Entertainment, and Bed Bath and Beyond. CNBC reported that the brokerage firm Interactive Brokers (IB) also imposed trading restrictions on the same day.[3] Additionally, CNBC noted that other brokerages, such as TD Ameritrade and Charles Schwab, had increased margin requirements the day before—a move described as less 'drastic' compared to outright trading halts.[4]
Customers should be aware that brokerages, including Robinhood, may take similar actions in the future. This poses a risk of economic harm, as investors could be artificially prevented from entering or executing trades during critical market movements.
References
- ↑ "Keeping Customers Informed Through Market Volatility". Robinhood. 28 Jan 2021. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Fitzgerald, Maggie (28 Jan 2021). "Robinhood restricts trading in GameStop, other names involved in frenzy". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Fitzgerald, Maggie (28 Jan 2021). "Interactive Brokers restricted GameStop trading to protect the market, says Chairman Peterffy". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Stevens, Pippa (28 Jan 2021). "GameStop shares jump 68% on Friday, bringing gains for the week to 400%". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link)