Securities Law

Robinhood Probed by SEC Over Payments From High-Speed Traders

Sept. 3, 2020, 2:08 AM

Robinhood Markets faces a U.S. regulatory probe into whether the firm properly informed brokerage clients that it sold their stock orders to high-frequency traders and other Wall Street firms, according to a person with direct knowledge of the matter.

The Securities and Exchange Commission scrutiny is focused on Robinhood’s disclosures prior to 2018, when the company altered its website to make information on how it earned money easier to find, said the person who asked not to be named because the review isn’t public. The SEC probe was first reported by the Wall Street Journal, which said Robinhood may pay...

To read the full article log in. To learn more about a subscription click here.