Wed, 09/02/2020 – 15:52
With so many mom-and-pop traders parlaying their stimulus checks and enhanced unemployment benefits in the stock market, our warnings were promptly ignored (hardly a surprise – nobody cares when things are going good).
But as the S&P 500 roars to yet another record high – accompanied this time by a disconcerting rebound in the VIX – WSJ reports that the SEC is almost ready to slap Robinhood with a $10 million fine for failing to disclose to its customers exactly how their order flow would be packaged and sold to the HFT firms.
To be sure, a deal likely won’t come this month – and the fraud investigation is ‘civil’ in nature.
Of course, as one twitter user pointed out, the fine is just another slap on the wrist, before everybody carries on with business as usual.
Robinhood will get a little fine and biz as usual will continue.
— Zr1Trader (@ZR1Trader) September 2, 2020
That is, until the music stops.
Go to Source
Author: Tyler Durden