Key Insights
- Robinhood suspends 24-hour overnight trading service due to market volatility
- U.S. stock indices and cryptocurrencies experience significant losses on Monday
- Open orders will be executed starting at 4 AM ET the following day
NEW YORK (MarketsXplora) – Popular U.S. neobroker Robinhood Markets Inc (HOOD.O) announced on Monday that it would suspend its 24-hour overnight trading service following a day of steep declines across global equity and cryptocurrency markets.
The decision comes after a tumultuous trading session that saw the Dow Jones Industrial Average plummet more than 1,000 points, or 2.6%. The broader S&P 500 index fell 3.0%, while the tech-heavy NASDAQ composite dropped 3.4%. Cryptocurrencies were not spared, with Bitcoin and Ether experiencing double-digit percentage losses.
In a statement posted on X, formerly known as Twitter, Robinhood said,
“Robinhood 24 Hour Market’s execution venue, Blue Ocean ATS (BOATs), has suspended overnight trading for tonight.”
The company added that open orders as of approximately 8 PM ET would be routed for execution starting at around 4 AM ET on Tuesday. Robinhood assured users that they could cancel their orders at any time and place new orders for subsequent trading sessions.
Robinhood’s move may raise questions about the resilience of round-the-clock trading platforms during times of market stress and could potentially impact investor confidence in such services.
The company did not provide further details on when the 24-hour trading service would resume or if any additional measures would be implemented to address market volatility.
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