Robinhood Markets Inc. will pay as much as $10.2 million in penalties to settle allegations stemming from a multistate probe into outages that left customers unable to trade during market volatility fueled by the pandemic in March 2020.
The investigation, conducted by state securities regulators, found that the Menlo Park, California-based brokerage, which pioneered free stock trades for retail customers, had deficiencies in many parts of its operations. Robinhood failed to exercise due diligence before approving options trading, report complaints to a regulator and supervise technology critical to providing customers with core broker-dealer services, among other issues, regulators said. ...
