Robinhood Markets gets additional requests from SEC on short sale trading

Spencer Platt

• Robinhood Markets (NASDAQ:HOOD) said it received additional requests from the U.S. Securities and Exchange Commission during Q2 for information about its compliance with regulations regarding short sales trade reporting, securities lending, and fractional share trading, the fintech disclosed late Wednesday in its 10-Q filing.
• The company had received in October 2021 requests from the SEC Division of Enforcement regarding its compliance with Regulation SHO, which concerns short sales trading. It had previously received similar requests from Finra's examination staff, it said.
• Robinhood (HOOD) also said it's cooperating with the SEC investigation.
• Robinhood (HOOD) shares are slipping 1.8% in Thursday premarket trading.
• Short selling is a bet that a security's value will fall. An investor sells borrowed shares (or other security) with an agreement to return them at a later date. If the share price falls, the investor will buy them at the lower price, return the shares to the owner, and pocket the difference.
• On Tuesday, Robinhood Crypto's $30M settlement with New York state was made final

Comments

[Jeff Pokorny]

I've always wondered how they handled the locate for the shares you want to short.