Robinhood says in 'strong position' to face unlikely market events

[BENGALURU] Robinhood Markets Inc on Tuesday highlighted steps it had taken over the past year to avoid imposing trading restrictions and said it was in a "strong position" to support customers through unlikely market events.

The online trading platform, which helped pioneer commission-free trading, said in a blog post its net capital position was US$2.7 billion, more than twenty-five times what is currently required by the US Securities and Exchange Commission (SEC).

Robinhood, in January 2021, had enacted temporary limits on GameStop and other so-called "meme stocks" amid a social media-fueled rally.

Early this year, the company asked a federal judge in Miami to dismiss a lawsuit alleging it engaged in fraud and market manipulation when it restricted trading in the stocks.

Robinhood last year also said it had increased the size of its customer support team and introduced 24-hour customer phone support, seven days a week.

REUTERS