WASHINGTON—FINRA has ordered Robinhood Financial to pay $3.75 million to its customers, and fined Robinhood Financial and Robinhood Securities $26 million for violating numerous FINRA rules, including failing to respond to red flags of potential misconduct.“In recent years, the brokerage industry has continued to evolve and develop innovative services and technologies that have allowed millions
Regarding Robinhood: Users setup a cash account/non margin -> Robinhood then reports it as a margin account on all account statements. This is for *all* Robinhood accounts regardless of age. Per Robinhood pg. 17 of their TOS: “If I have a margin account, Robinhood is permitted to borrow a dividend paying stock in the normal course of business and, as a result, in such situations instead of
I am capable of understanding leveraged funds and their risks. I do not need these measures imposed on me. However, some better disclosure from the providers could be helpful to the public. Disclosures could include:
1) Predetermined plans for reverse and forward splits: "We will reverse split this fund if the value falls under $x.yz for a period of _________ days."
2) Better
Yes all these disclosures are ok and show improvement. But what we need is bigger fines and penalties for those who breaks the rules and manipulating the market, yes Hedged finds and Broker platforms such as Robinhood. You need to say it’s enough and you can’t keep doing wrong stuffs. All these little fines recently changes nothing, someone is at fault and guilty, some people deserve to go to
If you read the Regulatory Notice 12-38 regarding FINRA's Short-Interest Reporting Rule, you'll come across this particularly relevant question in the FAQs. Q7. How should a firm reflect fractional shares in its short-interest reports? A7. If a firm has a fractional short-interest position (e.g., 125.6 shares), it should truncate the position to reflect a whole number when reporting
Hello, I would like more transparency when it comes to reporting short interest. Right now short interest doesn’t account for naked shorting which is illegal but still being done and the data’s does not always reflect the current state. Every platform charge a subscription fee in order to view short interest which should be available just like every other data. Short interest from ortex, fintel,
