By removing payment for order flow, markets benefit from more efficient, transparent trading, according to SEC Chairman Gary Gensler.
The announcement came as part of its Q2 earnings report, which saw the company report significant losses from the most recent quarter—despite an uptick in digital currency trading through the platform.
The all-cash deal points to a direction of travel for Robinhood towards investing in technologies and companies in and around the brokerage and corporate sectors.
Robinhood, the US-based financial services provider, has gone public on the Nasdaq stock exchange under ticker-symbol $HOOD.
In a regulatory filing with the U.S. Securities and Exchange Commission, the company revealed it’s facing the penalties over issues related primarily to anti-money laundering and cybersecurity.
Robinhood has restricted user access to digital currency trading on its platform–this move comes after Dogecoin pumped 800%.
Robinhood is facing legal action from regulators in the United States, following accusations it has been marketing aggressively to inexperienced traders.
Digital currency-friendly stock trading platform Robinhood Markets Inc. has reportedly hired Goldman Sachs to lead its upcoming IPO.
The report claims that the stock and digital currency trading app has asked banks to pitch for roles in the IPO.
Robinhood is now valued at $11.7 billion and has been reported to be planning an initial public offering this year.
The app-based platform is alleged to have failed in its duty to disclose the information, with its ‘How We Make Money’ page silent on sales of its order flow.