Robinhood Market Inc. i under investigation by the United States’ Securitie and Exchange Commission (SEC) over it dealing with high-frequency trading firmsHitsTs), according to The Wall Street Journal.
According to people familiar with the matter, the SEC’ investigation i o the commission-free stock trading app i at an advanced stage and focuse on the fi ech’ failure to completely disclose it practice of selling clie ordeHitso HFTs.
Robinhood could be looking at paying aupwardpward of $10 million if it settle with the US regulator, one of the source told the new outlet. However, a deal i not likely to be reached thi mo h a a proposed fine ha not been formally negotiated, the source said.
So far, Robinhood ha declined to respond to media request for comme , but a spokeswoman did inform The Wall Street Journal: “We strive to mai ain constructive relationship with our regulator and to cooperate fully with them.” The SEC ha also rejected media request for comme .
The Hit Keep Coming for Robinhood
The supposed investigation from the SEC come a the commission-free trading app ha suffered a number of blow in rece mo hs. Namely, the fi ech’ platform ha struggled to keep up with demand, and a such, ha experienced system wide outage on numerou occasions, one back in March amid peak COVID-19 volatility, and one more rece ly in June.
Following on from this, Robinhood decided to delay it launch in the United Kingdom. A Finance Magnate reported, the company decided to do so in order to focu on strengthening it infrastructure and looking to bond with clie after rece outages. Now, the launch i likely to happen at the end of thi year.
However, it definitely ha not been all doom and gloom for the company. In August, the fi ech closed a $200 million Serie G funding round led by D1 Capital Partners, putting it valuation at $11.2 billion.
In June, Robinhood beat it rival by recording 4.3 million daily average reDarts trade (DARTs) for the mo h. Thi wa the strongest value compared to it competitor and wa the first time the company ha shared it mo hly totals.