Robinhood suspends 24/7 trading on Monday
Robinhood suspends 24/7 trading on Monday
The brokerage firm Robinhood announced that it has temporarily suspended its overnight trading service due to issues with the third-party execution platform, Blue Ocean ATS. This suspension has affected the company's "24/5 trading" feature, which was launched in May 2023 and allows users to trade stocks and ETFs during extended hours, from 8:00 PM Eastern Time on Sunday to 8:00 PM Eastern Time on Friday.
In a post on the social media platform X, formerly known as Twitter, Robinhood stated that 24 Hour Market orders opened at around 8:00 PM Eastern Time will be routed for execution starting at approximately 4:00 AM Eastern Time the next day. Additionally, the broker emphasized that traders can cancel their orders at any time and place them for another trading session.
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The brokerage firm did not provide details on whether the suspension will extend beyond early Tuesday morning or if it will affect other brokerage firms offering similar overnight trading services. The suspension is particularly concerning for traders who rely on extended trading hours to respond to global market events occurring outside regular U.S. trading sessions.
Blue Ocean ATS, the third-party firm responsible for handling Robinhood's overnight trades, issued a statement via CNBC, explaining that capacity issues experienced the previous night led to the cancellation of "a small percentage of trades." The firm also mentioned that it plans to transition to a new technology system within the next two weeks to address these issues and improve trading capabilities.
These technical difficulties have arisen at a time when global markets are already under significant pressure. On Monday, the Dow Jones Industrial Average dropped by more than 1,000 points, and the S&P 500 recorded its worst single-day performance since 2022. The sharp sell-off has raised concerns among investors, and the inability to access overnight trading adds another layer of complexity for those looking to manage their portfolios in a volatile market.
Robinhood's "24/5 trading" service was designed to provide users with greater flexibility by allowing them to trade during hours when U.S. markets are typically closed. However, the recent disruption highlights the potential risks associated with using extended trading hours, particularly when technical issues arise.
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