Robinhood Halts Event Contracts Following CFTC Request
The Commodity Futures Trading Commission (CFTC) has requested that Robinhood (HOOD) suspend access to sports event contracts for its customers. This move comes after Robinhood recently launched event contracts for Super Bowl LIX.
The CFTC's request has prompted Robinhood to suspend the rollout of the event contracts. Robinhood estimates that approximately 1% of its customers were using the new product. The company is currently exploring options to allow these customers to close or resolve their positions.
Robinhood expressed disappointment with the outcome, stating that it had been in regular communication with the CFTC regarding its plans to offer the product. The company has also advocated for balanced regulation in the futures and derivatives markets.
Despite the setback, Robinhood shares remained resilient, gaining 1% in midday trading.