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The Securities and Exchange Commission today published a request for public comment on potential reform measures to improve the resilience of money market funds as highlighted in a report of the President’s Working Group on Financial Markets issued in…
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The Securities and Exchange Commission today charged Joseph Jackson and Colm Callan, respectively the former CEO and CFO of WageWorks Inc. with making false and misleading statements and omissions, including to the company’s auditors, that…
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The Securities and Exchange Commission today charged three individuals with defrauding hundreds of retail investors out of more than $11 million through two fraudulent and unregistered digital asset securities offerings. According to the SEC’s complaint…
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New York State is now requiring Investment Advisor Representatives who work in New York, or who have clients in New York, to register with the New York Investor Protection Bureau and meet certain exam requirements.
The new regulation goes into effect February 1, 2021.
William Galvin, the Secretary of the Commonwealth of Massachusetts, and its chief securities regulator told Barron’s that the trading in Gamestop should be halted for 30 days.
Korea’s economy has posted one of the best performances by an Organization for Economic Cooperation and Development member amid the pandemic.Securities law question? Ask nationally known securities lawyer Mark Astarita, by phone or email. 212-509-6544 or mja@sallahlaw.com
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In the aftermath of the run-up in the price of Gamestop (GME) Robinhood removed GME from its trading platform. Yes, Robinhood simply removed a publicly traded security from its platform, preventing its users from buying, and presumably selling, the security.
While Robinhood claims that it has the right to do so in its customer agreement, that may not be the case. Many commentators are claiming that Robinhood has the right to reject orders, which is certainly true – depending on the reason. And the reason for rejecting orders typically relates to the customer or the order itself.
There is there is nothing in Robinhood’s customer that permits it to remove a publicly traded security from its platform, preventing customers from purchasing that security.
Robinhood will undoubtedly attempt to rely on this sentence in the customer agreement:
I understand Robinhood may at any time, in its sole discretion and without prior notice to Me, prohibit or restrict My ability to trade securities.
It is doubtful that this provision, which is contained in a paragraph titled “Purchases” and discusses the customer’s obligation to pay for stock purchases, will support a claim that it can be used by the firm to prevent ALL customers from purchasing a particular security.
In addition, Robinhood defines the word “My” and “Me” in the agreement to refer to the owner of the account in question. It does not give Robinhood the authority to prevent all customers from trading a particular security.
Another interesting point is that Robinhood did not stop trading because of some altruistic motive, it did so to protect its own profits, according to BloombergLaw. According to Bloomberglaw, Robinhood Chief Executive Officer Vlad Tenev said that the company’s financial requirements, such as deposits to clearing houses, increase when there’s a lot of volatility in the market, so “to protect the firm and to protect our customers we temporarily disabled buying in these securities.”
The Securities and Exchange Commission today charged Vuuzle Media Corporation, a purported online live streaming and entertainment company, and its founder Ronald Shane Flynn (a.k.a. Ronnie Shane) with fraudulently offering over $14 million in securities…
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The Securities and Exchange Commission today announced that Manisha Kimmel will conclude her tenure as Senior Policy Advisor, Regulatory Reporting, at the end of this month. Since joining the SEC in January 2019, Ms. Kimmel has coordinated the SEC’s…
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One of the first breaks with the idea of market efficiency was the discovery of a size premium. Now investors question it’s position as a key factor for investors.
* This article was originally published at The Securities Law B
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