Robinhood cites steps taken to avoid trading restrictionswritten by Bella Palmer
Robinhood said in a blog post that its net capital position was US$2.7 billion, more than 25 times what is currently required by the U.S. Securities and Exchange Commission
Robinhood Markets Inc on Tuesday highlighted steps it has taken to avoid trading restrictions and said it was in a ‘strong position’ to support customers through unlikely market events, in a blog post published nearly one year after a social-media-fuelled rally that rattled markets.
The online trading platform restricted trading in GameStop and a handful of other ‘meme’ stocks as the regulatory deposit requirements for settling the securities skyrocketed during the rally driven by retail investors.
Robinhood said in Tuesday's blog post that its net capital position was US$2.7 billion, more than 25 times what is currently required by the U.S. Securities and Exchange Commission.
Those restrictions had infuriated clients trying to buy and sell the ‘meme’ stocks.
Robinhood Markets, Inc. is known for pioneering commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app.
It has 31 million users and 1.6 million people on a waitlist for its cryptocurrency wallet.
Early this year, Robinhood asked a federal judge in Miami to dismiss a lawsuit alleging it engaged in fraud and market manipulation when it restricted trading in the stocks.
Robinhood last year also said it had increased the size of its customer support team and introduced 24-hour customer phone support, seven days a week.
Analysts on average expect Robinhood to report a $355 million loss when it posts its December-quarter results on Thursday after the bell.
Following a slowdown in stock market trading by retail investors, shares of Robinhood, which went public last July, have dropped by nearly 66% from its IPO price.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.