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Robinhood Suspends Overnight Trading Due to Execution Venue Issues
Brokerage firm Robinhood announced on Monday evening that it would temporarily halt its overnight trading services. The disruption stems from problems associated with its execution venue, Blue Ocean ATS, which is the third-party provider that facilitates round-the-clock trading for Robinhood’s users.
In a statement shared on social media platform X, the company informed customers that, “Robinhood 24 Hour Market’s execution venue, Blue Ocean ATS (BOATs), has suspended overnight trading for tonight. 24 Hour Market orders that are open as of approx. 8 PM ET will be routed for execution starting at approx. 4 AM ET tomorrow. You may cancel your order at any time, and can still place an order for another trading session.”
The duration of this suspension remains uncertain, as it is not clear if trading will resume later on Tuesday or if other brokerage firms that facilitate similar overnight trading options are dealing with related issues.
This announcement follows a day of significant technical challenges for several brokerage firms, including Charles Schwab, which experienced outages that temporarily disrupted user access to their accounts. Such widespread difficulties highlight the vulnerabilities in trading platforms, especially during turbulent market conditions.
Monday’s trading session was marked by a notable sell-off in global markets, with the Dow Jones Industrial Average plummeting over 1,000 points and the S&P 500 experiencing its most significant decline since 2022, reflecting investor concerns and volatility.
Robinhood had initiated its “24/5 trading” model—operating from 8 p.m. ET on Sunday to 8 p.m. ET on Friday—in May 2023. This service allows trading during off-hours, primarily focusing on the most liquid stocks and exchange-traded funds (ETFs).
As of now, Blue Ocean ATS has not provided further comments regarding the cause of the suspension or the expected timeline for resolution.
Source
www.cnbc.com