Robinhood’s crypto-friendly trading took a hit overnight as its 24-hour market was temporarily shut down.
In trending crypto news, the popular trading app, Robinhood experienced disruption in its 24-hour trading service on August 6, as the platform’s execution venue, Blue Ocean ATS (BOATs), was suspended for overnight trading.
Robinhood’s official support account announced the halt on X, stating that it would be in effect from midnight to 8 AM UTC.
This 24-hour trading halt came after another alleged overnight suspension by BOATs on the previous day, with numerous users reporting the issue on Aug. 5. This suspension coincided with a global stock market crash on Monday.
“Our overnight trading session is currently operating,” a Robinhood spokesperson stated when asked about the 24-hour trading service halt.
Introduced in May 2023, Robinhood’s 24-hour market service allows customers to trade outside traditional hours via BOATs.
To prevent extreme price fluctuations, BOATs automatically halt trading for any stock that moves more than 20% from its closing price during extended trading hours. This measure is similar to the limit up and limit down rules employed by traditional exchanges during regular market hours.
Robinhood’s website further explains:
“Public exchanges have similar controls to prevent extreme price movements during market hours, including limit up and limit down halts. This means individual securities in the 24-hour market won’t trade outside these pricing bands. BOATs may also reject orders with limit prices outside these bands.”
As per crypto news today, social media reports indicated that Robinhood was not the only brokerage facing issues due to market volatility. Other platforms, including Charles Schwab, Fidelity, Vanguard, TD Ameritrade, E-Trade, UPS, and CenturyLink, also reportedly experienced trading outages.
However, users are up in arms after a trading halt, which resulted in canceled orders and alleged financial losses. Following the platform’s announcement of a suspension in overnight trading, a wave of disgruntled investors took to X to express their outrage.
One user, Kyle Babbit, highlighted the impact of canceled trades on potential profits, sharing a screenshot of Robinhood’s notification about canceled orders. The email attributed the cancellations to issues experienced by Blue Ocean ATS, the execution venue.
Amidst the growing discontent, calls for regulatory scrutiny have emerged. Investors are questioning the legality of the trading halt and demanding answers from Robinhood. Some users have even reported missing purchase records and claimed financial losses due to the suspension.
