Robinhood Halts Event Contracts Rollout at CFTC Request
Summary:
The Commodity Futures Trading Commission (CFTC) has requested Robinhood (HOOD) to cease offering sports event contracts. Robinhood had recently launched event contracts for Super Bowl LIX, allowing users to bet on the game's winner. However, the CFTC's request has led to the suspension of these contracts.
Key Points:
* The CFTC cited concerns over the potential for customer harm.
* Robinhood estimates that approximately 1% of its customers were involved in the event contracts.
* The company is working to provide options for customers to close or resolve their positions.
* Robinhood expressed disappointment over the decision but remains committed to advocating for balanced regulation in the futures and derivatives markets.
* Despite the news, HOOD shares rose by 1% in midday trading.