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.
This sounds like an excuse in the line of “there were several different cases where what we did would have been legal, for instance if regulations forced it.... anyway, no market makers forced us”
It begs the question, are they not stating the specific reason because there isn’t one and they would get caught in a lie? And are they not claiming to not have been influenced at all only because technically a direct personal call from someone who’s a ceo of a market maker isn’t the same as the company themselves applying pressure?
I have to think that the reason they can’t issue a simple three line explanation is because there is none they could truthfully tell. So instead you get a page full of misdirection and carefully crafted “technically not lies”.
3 comments
[ 3.8 ms ] story [ 21.7 ms ] threadAn update on market conditions
Hi ...,
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
I don't trust that much verbosity
It begs the question, are they not stating the specific reason because there isn’t one and they would get caught in a lie? And are they not claiming to not have been influenced at all only because technically a direct personal call from someone who’s a ceo of a market maker isn’t the same as the company themselves applying pressure?
I have to think that the reason they can’t issue a simple three line explanation is because there is none they could truthfully tell. So instead you get a page full of misdirection and carefully crafted “technically not lies”.