Robinhood Markets Inc faces a probe by the U.S. Securities and Exchange Commission over its early failure to fully disclose its practice of selling clients’ orders to high-speed traders, the Wall Street Journal reported on Wednesday.
The investigation is at an advanced stage and the company could pay a fine exceeding $10 million, the report added, citing people familiar with the matter. (on.wsj.com/3jG9zS4)
The fintech startup, which has been credited with helping popularize trading among millennials, is also being investigated by the SEC for its handling of a system outage in March, Bloomberg News reported last month.
A Robinhood spokeswoman said on Wednesday the company strives to cooperate fully with its regulators but does not discuss or comment on its communications with them.
The SEC declined to comment.