Robinhood Markets Inc. on Tuesday highlighted steps it has taken to avoid imposing trading restrictions and said it was in a “strong position” to support customers through unlikely market events, in a blog post published almost one year after a social-media-fueled rally that rattled markets. The online trading platform, which helped pioneer commission-free trading, and several other brokerages on Jan. 28, 2021, 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 $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. Early this year, Robinhood asked a federal judge in Miami to dismiss a lawsuit alleging it engaged in …
Robinhood Says It Is in ‘Strong Position’ to Face Unlikely Market Events
January 26, 2022
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