By Niket Nishant and John McCrank
(Reuters) – Retail brokerage Robinhood said on Friday U.S. regulators were looking into its temporary trading curbs on so-called meme stocks earlier this year as shares of companies like GameStop Corp soared during a social media-fueled short-squeeze.
The brokerage, whose trading app surged in popularity over the past year, also said in a regulatory filing https://bit.ly/3kpGAUb detailing the probes that it set aside $26.6 million for a potential settlement around trading outages in March 2020, as well as its options trading policies.
Menlo Park, California-based Robinhood was at the heart of a mania that gripped retail investors in late January following calls on Reddit thread WallStreetBets to trade certain stocks that were being heavily shorted by hedge funds.
The flurry of activity drove …
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