Robinhood Halts Sports Event Contracts Following CFTC Request
The Commodity Futures Trading Commission (CFTC) has formally requested that Robinhood (HOOD) suspend customer access to sports event contracts. The decision comes after Robinhood launched event contracts for Super Bowl LIX, allowing users to trade on the game's outcome.
Robinhood suspended the rollout of the contracts after consultation with the CFTC, which estimates that approximately 1% of Robinhood customers had engaged with the new product. The company is working to provide options for these customers to close their positions.
In a statement, Robinhood expressed disappointment with the CFTC's decision, emphasizing its ongoing communication with the agency regarding the product's offering. The company has advocated for balanced regulation in the futures and derivatives markets and highlighted the potential economic benefits of event contracts.
Despite the regulatory setback, Robinhood's shares have remained relatively stable, gaining 1% in midday trading.