I want to thank everyone for their patience and support. While today’s developments are not new, they are never easy.
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Vlad Tenev on X: "As a brokerage firm, Robinhood has many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment."
Our customers and our mission to increase access to investing remain our priority. That will never change. I am proud of all our staff for putting their heads together and working to immediately communicate to our customers what was going on.
I want to clarify a few things and also explain why Robinhood made the decisions it did to restrict purchasing of certain securities.
As a brokerage firm, Robinhood has many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment.
These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today.
To be clear, this decision was not made on the direction of any market maker we route to or other market participants.
Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and make adjustments as needed.
We cannot control, however, the lightning-fast spread of information and misinformation that takes place on social media, and for that I am incredibly sorry to our customers and staff for this.
We stand in support of you, our customers. Democratizing finance for all means giving more people access, not less. We’ll keep monitoring market conditions and will update this Help Center article with the latest changes. robinhood.com/us/en/support/…
Hi Vlad, I'd really appreciate you or your team at
@RobinhoodApp@AskRobinhoodcould provide a reference to which net capital obligations you are referring to? and these other financial requirements? Thank you - a customer since 2015. I'd love to learn.