Robinhood Stops Overnight Trading: Problems with the execution venue have temporarily caused broker Robinhood to stop its overnight trading services. The business announced the move on X, stating that issues with Blue Ocean ATS—the third-party provider responsible for Robinhood’s round-the-clock trading—were to blame.
Blue Ocean ATS (BOATS), the execution venue for the Robinhood 24-Hour Market, has decided to halt nighttime trading for tonight. The business stated that twenty-four-hour market orders are active as of approximately. Starting tomorrow at around 4 AM ET, the execution for 8 PM ET will be routed. At any moment during the trading session, you can cancel your order and make a new one.
Blue Ocean ATS to Migrate to New System
According to CNBC’s interview with a Blue Ocean ATS representative, the firm had capacity concerns the night before, leading to a small fraction of deals canceling. According to the representative, Blue Ocean ATS will switch to a new system in two weeks.
The disclosure by Robinhood comes after a day of technical issues for other brokerages, including Charles Schwab, which momentarily blocked access to accounts for specific consumers. Due to Monday’s market volatility, the Dow Jones Industrial Average fell more than 1,000 points, and the S&P 500 had its worst day since 2022. With the launch of its “24/5 trading” service in May 2023, Robinhood allowed its customers to trade between Sunday and Friday at 8 p.m. ET.
Blue Ocean ATS (BOATs), the execution venue for Robinhood 24-Hour Market, has temporarily halted overnight trading as of tonight. Beginning at around 4 AM ET tomorrow, any 24 Hour Market orders open as of 8 PM ET will be routed for execution. Your order can be canceled whenever you like, and…” There was a tweet from Robinhood Help on August 5, 2024.
Robinhood Stops Overnight Trading: The stocks and ETFs with the highest liquidity are typically the only ones that can be traded overnight. It is unknown if the restriction will continue past Tuesday morning or if it will impact other brokerage firms that offer overnight trading.
Several social media accounts claimed that the stock market’s instability was causing problems for brokerage platforms other than Robinhood. Trading disruptions have also been reported on other brokerage systems, including Charles Schwab, Fidelity, Vanguard, TD Ameritrade, E-Trade, UPS, and CenturyLink.
Robinhood Saw 224% Surge in Crypto Trading Volumes in Q1
In the first three months of the year, Robinhood saw a 224% spike in crypto trading volumes, reaching $36 billion. The expansion was a significant factor in the 59% year-over-year increase in the company’s transaction-based revenue to $329 million, with crypto-related revenue seeing a massive 232% increase to $126 million.
As a result of the improved crypto market, Robinhood’s crypto trading volumes have surged, which is not surprising considering other publicly traded crypto rivals, including Coinbase, have also announced outstanding first-quarter performances. The U.S. Securities and Exchange Commission (SEC) sent Robinhood a Wells Notice about its cryptocurrency division earlier this year, which the company made public.
The receiver of a Wells Notice is notified that the regulator plans to take enforcement action once the investigation has been completed. The SEC has previously served Wells Notices on companies such as Uniswap and Consensys.
