Robinhood Halts Sports Event Contracts After CFTC Request
Robinhood (HOOD) has suspended the rollout of its event contracts for Super Bowl LIX following a request from the Commodity Futures Trading Commission (CFTC).
The CFTC requested that Robinhood "not permit customers to access" sports event contracts. Robinhood launched the contracts on Monday, allowing customers to trade on the outcome of the game between the Kansas City Chiefs and the Philadelphia Eagles.
Robinhood estimates that approximately 1% of its customers were using the event contracts. The company is exploring options for allowing these customers to close their positions or resolve them.
Robinhood expressed disappointment in the CFTC's decision, stating that it had been in regular communication with the agency regarding its plans to offer the product. The company has advocated for balanced regulation in futures and derivatives markets and believes that event contracts offer economic benefits.
Despite the setback, Robinhood shares rose 1% by midday trading.