Robinhood has a few things to get out of his chest ahead of tomorrow’s IPO

You may have heard that a trading app called Robinhood will be released tomorrow. If you haven’t, know that it’s a big deal. He is the privileged platform for Millennials and other stock market mutineers. It’s going to revolutionize both the way IPOs are done and the cryptocurrency markets, the latter eventually. It’s done well enough for itself – well enough to possibly earn a $ 35 billion valuation – even though more than four-fifths of its revenue is currently in the regulatory sights. Oh, and speaking of regulatory crosshairs, if you’re aiming to spend $ 38 to $ 42 or more depending on Degenerates’ Bounty to enter Memes Stock to end all Memes Stocks, there are a few things. that you probably should know.
Regulators are investigating that Robinhood CEO Vlad Tenev is not licensed by Wall Street’s powerful self-regulator FINRA, the online trading platform announced Tuesday. Regulators are also investigating stock trades by Robinhood employees that occurred during the time of the controversial restrictions on the company’s stock imposed in January amid turmoil in the Reddit market.
Just a few more lines in the already voluminous “existential risk factors” section of Robinhood’s corporate documents going forward, you might think. And it’s true, but that’s not all.
FINRA generally requires that CEOs of registered brokers be registered with the agency…. Tenev is the CEO of Robinhood Markets, the parent company which is not registered with FINRA…. The CEO of a parent company that owns a broker does not necessarily need to be registered….
The key may be how involved Tenev is in Robinhood’s day-to-day operations. Some of Tenev’s earlier comments suggest he has an important leadership role, including being involved in delicate negotiations with his clearinghouse during GameStop’s trade crisis in January.
It sounds serious, as do the insider trading allegations, which, if true, don’t seem likely to endear Robinhood to the trading group to which it has allocated 35% of its IPO shares, but which certainly seem likely to endanger Robinhood. waking up the ears of the plaintiffs’ attorneys are already suing the company for literally favoring everyone other than its users during the GameStop Affair. On the other hand, nothing seems to matter anymore, so everything will probably be fine.
Robinhood unveils new regulatory probes on the eve of its successful IPO [CNN]
Robinhood’s IPO to test the loyalty of the retail legion it helped create [WSJ]
Robinhood walks the tightrope of IPO prices [WSJ]
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