Robinhood failed to disclose certain trading data that regulators have previously fined other brokerages for, report says

  • Robinhood failed to disclose data on an unknown number of fractional share trades, Reuters reported.

  • The trading app launched its fractional-share service in December 2019, but only began reporting trades this year.

  • US regulators have previously fined other brokerages for violating trade reporting rules.

US-based trading app Robinhood failed to disclose data on certain stock trades for more than a year, Reuters reported on Thursday.

The data relates to stock trades executed under its fractional-share service launched in December 2019.

Fractional shares allow investors to hold partial shares of a company’s stock. Instead of spending $650 on a Tesla share, one can spend a much lower amount to own a portion or fraction of a share.

Financial brokerages are required to publicly disclose all trades, including those smaller than a share, to trade-execution facilities under Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission rules, Reuters said.

markets.businessinsider.com/news/stocks/robinhood-trade-execution-data-failed-disclose-regulators-fined-brokerages-2021-4-1030284638

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