By Dean Seal
Shares of Robinhood Markets retreated after the two of its units agreed to pay almost $30 million to resolve claims from the Financial Industry Regulatory Authority.
The stock was down 6.6% at $41.50 in premarket trading. Shares had gained 19% year-to-date when the market closed last week.
The Wall Street self-regulator better known as Finra said after Friday's closing bell that it has found violations related to anti-money laundering programs, disclosures and clearing system supervision at Robinhood Securities and Robinhood Financial. Some of the violations date back more than a decade.
Robinhood agreed to settle the matters in part with $3.8 million in restitution to customers affected by a policy known as order collaring, a since-ended practice that occasionally prevented some users' trades from being executed.
Finra further accused Robinhood of failing to reasonably manage its clearing system technology, which contributed to trading issues the brokerage faced in January 2021 amid a frenzy of meme-stock trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
March 10, 2025 06:44 ET (10:44 GMT)
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