Robinhood agreed to pay $65M to settle SEC charges related to misleading customers. The charges allege that Robinhood failed to disclose payments that it received from high-speed traders in exchange for customer orders (also known as “order flow”) and did not secure the best security prices for customers (depriving customers of over $34M in aggregate). Here's the full announcement from the SEC.
Extra: The charges come amid increasing regulatory scrutiny on the commission-free trading platform, including a complaint filed by Massachusetts regulators on Wednesday.
The New Paper
This story is from the December 18, 2020 edition of The New Paper – a clear, concise daily briefing that makes fact-first news easy to consume. Try it today.
