Robin Hood is an online stock trading platform on the Wall Street stock exchange, whose existence and the volume of trading done through them by so-called. small investors, caused several controversial situations only from the beginning of 2021, where of course the biggest was the affair related to short sales, and in turn a “mass uprising” in defense of GameStop.
The Financial Industrial Regulatory Authority (FINRA), as the current regulator of all Wall Street transactions, has decided to fine Robin Hood $ 70 million for “systematic oversight” of harming investors by providing misinformation.
This is the largest sentence ever imposed in the history of FINRA.
However, the penalty was not imposed in any case of the current calendar year, but for the long-term systemic interruptions of trading on the platform that occurred during March 2020, as well as for insufficiently explained procedures for trading options, which led to the suicide of a twenty-year-old trader.
Robin Hood will have to pay a $ 57 million fine and another $ 12.6 million plus interest to compensate a number of damaged investors.
Just a few months ago, this platform was seen as a window for small investors to enter the US stock market (and beyond), something in line with its name. It was founded eight years ago in California as a financial startup by the Bulgarian Vladimir Tenev and the American of Indian descent, Baiju Praulkumar Bat.
According to social networks, and above all to the already known forums dedicated to stock trading on the Reddit network, the latest decision of the financial regulators is considered as part of the aggressive defense of the big investors from their attempt to “open the market” to the ordinary world.