Online Trading Firm Robinhood to Pay $45 Million to Settle SEC Charges
Robinhood Markets has agreed to pay $45 million to settle charges brought by the U.S. Securities and Exchange Commission (SEC) over record keeping, trade reporting, and other rule violations. The regulator found that Robinhood Securities LLC and Robinhood Financial LLC violated numerous requirements, including accurately reporting trading activity, filing timely reports of suspicious activity, maintaining records, and complying with short sale rules.
The firm also admitted to failing to retain work-related communications with employees’ use of messaging apps and other “off-channel” communication platforms, as well as deficient trading data, known as blue sheets. Additionally, regulators found that Robinhood failed to adequately address cybersecurity risks.
Robinhood General Counsel Lucas Moskowitz said the firm is pleased to have resolved the matters and is well-positioned to continue leading the industry in developing innovative products and services. The company looks forward to working with the SEC under a new administration.
