(Reuters) – Online brokerage app Robinhood is in talks with the Financial Industry Regulatory Authority (FINRA) regarding resolution of matters including options trading and outages, the firm said in a filing on Friday. (https://
Robinhood, credited with popularising trading among millennials, had said it was under investigation by the authority over several outages since early March, particularly on days of high trading volumes.
FINRA is Wall Street’s self-regulatory arm, which oversees brokerages and is tasked by Congress with protecting investors from unscrupulous brokers.
The fintech startup said last year it would review its options trading practices after criticism mounted following news that one of its customers took his own life after believing he had lost more than $730,000 using the free trading app.
The company said on Friday it could lose at least $26.6 million from its settlement with FINRA.
The negotiations also involve customer communications, the company said.
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