Robinhood Financial
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Basic information | |
---|---|
Founded | 2012 |
Type | Subsidiary |
Industry | Financial Services |
Official website | http://robinhood.com/ |
Robinhood Financial, LLC, is a wholly-owned subsidiary of Robinhood Markets, Inc. The US-based company provides brokerage and related financial services.
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
- ↑ https://newsroom.aboutrobinhood.com/keeping-customers-informed-through-market-volatility/
- ↑ https://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html
- ↑ https://www.cnbc.com/2021/01/28/interactive-brokers-restricted-gamestop-trading-to-protect-the-market-says-chairman-peterffy.html
- ↑ https://www.cnbc.com/2021/01/28/robinhood-will-allow-limited-buying-of-restricted-securities-friday-gamestop-jumps-after-hours.html