Robinhood Markets Incorporated is facing a civil fraud investigation over its early failure to fully disclose its practice of selling clients’ orders to high-speed trading firms, according to the Wall Street Journal.
The investigation is apparently at an advanced stage and the company could have to pay a fine exceeding $10 million if it agrees to settle the Securities and Exchange Commission probe. A deal is allegedly unlikely to be announced this month, according to the article, and the two sides haven’t formally negotiated a proposed fine.
A Robinhood spokeswoman declined to comment to the Wall Street Journal on the investigation or any talks with regulators, but said: “We strive to maintain constructive relationships with our regulators and to cooperate fully with them.”
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