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An update on market conditions–Robinhood
2 points by ixacto 11 months ago | hide | past | favorite | 1 comment
Hi ray,

It’s been a tough day, and we’re grateful to you for being a Robinhood customer. In light of the extraordinary market conditions this week, we temporarily limited buying for certain securities this morning. Starting tomorrow, we plan to allow limited buys of these securities.

We’ll continue to monitor the situation and may make adjustments as needed. This was a temporary decision made to best continue serving you, and was not an easy one to make. We know it’s led to frustration and confusion, and wanted to provide some clarity.

As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today. To be clear, this decision was not made on the direction of any market maker we route to or other market participants.

The past year in particular has shown us that the financial markets are for everyone—not just institutional investors and hedge funds. We’ve seen a new generation enter the market, and they’re sparking conversations about what it means to be an investor. We stand in support of you, our customers. Democratizing finance for all means giving more people access, not less. We’ll keep monitoring market conditions and will update this Help Center article with the latest changes. We also published a blog post regarding today’s events. Thank you again for being a Robinhood customer. We’re so grateful for your support.

Sincerely,

The Robinhood Team

*This is for anyone who doesn't have a robinhood account. I am not posting this to take a stand on the content of the letter, but here it is so everyone can have access to it.*




This is mostly covered in, or is a rehash of, the blog post (well, PR spiel) released earlier today:

https://blog.robinhood.com/news/2021/1/28/an-update-on-marke...

They also released one a few hours before that [1], re the restrictions imposed on trading in certain stocks. The post didn't seem to prevent the backlash.

[1] https://blog.robinhood.com/news/2021/1/28/keeping-customers-...




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