Robinhood has suspended its rollout of sports event contracts after receiving a request from the Commodity Futures Trading Commission (CFTC) to stop allowing customers to access these contracts. The company had already begun trading the contracts on Monday, but now plans to provide an option for affected customers to close their positions or take them to resolution.
The CFTC had requested that Robinhood “not permit customers to access” sports event contracts, citing concerns about potential regulatory issues. Despite this, shares of Robinhood gained 1% by midday trading on the news, indicating a lack of concern among investors.
Robinhood expressed disappointment with the outcome and stated that it had been working closely with the CFTC to advocate for balanced regulation in the futures and derivatives markets. The company had also taken steps to provide feedback to the CFTC and champion the economic benefits of event contracts.
Source: https://finance.yahoo.com/news/and-now-robinhood-wont-let-you-bet-on-the-super-bowl-183703653.html