HOOD Faces CFTC Request to Halt Sports Event Contracts
The Commodity Futures Trading Commission (CFTC) has requested Robinhood (HOOD) to suspend access to sports event contracts, per an announcement on Tuesday.
On Monday, Robinhood announced the launch of event contracts for Super Bowl LIX, allowing users to wager on the outcome of the game.
The CFTC's request has led Robinhood to temporarily halt the rollout of event contracts. Approximately 1% of Robinhood customers have subscribed to the new product. The company will provide options for these customers to either close their positions or resolve them.
Robinhood expressed disappointment, claiming regular communication with the CFTC regarding the product's intention and plans. The company has also advocated for balanced regulation within the futures and derivatives markets.
Despite the news, Robinhood's shares rose 1% in midday trading.