Robinhood CEO Vlad Tenev is anticipated to testify earlier than the U.S. Home Monetary Providers Committee on Feb. 18 following accusations the buy
Robinhood CEO Vlad Tenev is anticipated to testify earlier than the U.S. Home Monetary Providers Committee on Feb. 18 following accusations the buying and selling platform labored with giant hedge funds to halt buying and selling on GameStop inventory, amongst others.
Based on a report by Politco on Monday, Tenev will possible seem earlier than a digital listening to titled “Sport Stopped? Who Wins and Loses When Brief Sellers, Social Media, and Retail Buyers Collide.”
The listening to, which kicks off at round 17:00 UTC, is being chaired by Congresswoman Maxine Waters (D-Calif.) who has already voiced her considerations over Robinhood’s actions.
“I’m involved about whether or not or not Robinhood restricted the buying and selling as a result of there was collusion between Robinhood and a number of the hedge funds that have been concerned with this,” Waters stated on MSNBC as cited in Politico.
Final Thursday, Robinhood restricted the power for merchants to purchase GameStop and different shares focused by Reddit group WallStreetBets, which aimed aimed to trigger monetary hurt to giant hedge funds by inflicting a “quick squeeze.”
Tenev stated his platform did so to guard itself and prospects throughout a tumultuous buying and selling interval the place demand outstripped its skill to facilitate compulsory deposits to clearinghouses.
The CEO denied his platform was “directed by a market maker or another market participant,” saying as an alternative the choice was primarily based on a “technical and operational” one.”