Robinhood says it can now solidly handle surprise market events, a year after controversially restricting meme-stock trading
Robinhoodis in a "strong position" to support customers through unlikely market events, the company said Tuesday.
- The brokerage said it now has a net capital position of $2.7 billion, which is 25 times what the SEC requires.
- A year ago, Robinhood restricted trading in GameStop and other red-hot meme
stocksto curb the wild speculative activity.
The trading app provider has a net capital position of $2.7 billion, 25 times what's required by the Securities and Exchange Commission for registered broker-dealers, it said in a Tuesday blog post.
Robinhood Securities "remains in a strong position to keep serving our customers through unlikely market events," it added.
The company highlighted the steps it's taken to earn back customer trust, such as bringing in round-the-clock phone support and tackling compliance-related risk issues.
A year ago,
Robinhood acknowledged that blocking trading in red-hot stocks had frustrated customers, and it vowed to ensure this wouldn't happen again.
In addition to being investigated by regulators, the retail-trading platform faced more than 50 lawsuits related to the limits on meme-stock trades.
In November, a Miami district court dismissed one such retail-investor lawsuit against Robinhood and market-maker Citadel Securities. The court said there was no evidence of a conspiracy to halt meme-stock trading in this case.
Robinhood is due to report fourth-quarter results after the bell on Thursday, with analysts on average expecting it to post a $355 million loss.
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