Amid Market Volatility, Robinhood Halts Overnight Trading Due to Partner Issues

Robinhood (Nasdaq: HOOD) on Monday temporarily suspended its overnight trading service due to issues with its execution partner, Blue Ocean ATS. The announcement came through Robinhood’s social media channels, informing users that the 24-hour market would be unavailable.

Blue Ocean ATS, the third-party firm responsible for facilitating Robinhood’s round-the-clock trading, has halted its overnight operations. As a result, any open orders placed after 8 p.m. ET will be processed starting at approximately 4 a.m. ET the following day. 

Robinhood has assured its customers that they can cancel existing orders or place new ones for future trading sessions.

A spokesperson for Blue Ocean ATS revealed that the suspension was prompted by capacity issues experienced the previous night, which led to the cancellation of a small percentage of trades. The firm plans to migrate to a new technology system within the next two weeks to address these concerns.

This disruption comes at a time when global markets are experiencing significant volatility. Monday saw a steep sell-off, with major indices such as the Dow Jones Industrial Average and the S&P 500 recording substantial losses. 

Notably, it wasn’t just Robinhood having problems. Nearly 14,500 Schwab users and over 3,600 Fidelity users reported problems, according to outage tracking website Downdetector.com. Charles Schwab acknowledged the issue on its X account, apologizing for login difficulties. The firm later announced at 12:38 p.m. ET that the issue had been resolved.

The Securities and Exchange Commission (SEC) said it was actively monitoring the situation for orderly market functioning. These technical problems, often triggered by extreme market volatility, have raised concerns about brokerages’ capacity to handle high volumes and have frustrated retail investors looking to adjust their positions.

As X user TheUltimator5 points out, the disruption has underlined “how flawed the system is and that 24h overnight trading should NOT exist under the current regulations since there is a big gap.” 

Robinhood introduced its “24/5 trading” feature in May 2023, allowing users to trade from Sunday evening to Friday evening. The service primarily focuses on highly liquid stocks and ETFs.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Robinhood’s Preliminary Q2 Orderflow Revenues Suggests Retail Trading Mania May Be Wearing Off

After trading below its offering range since the debut day of its IPO, Robinhood (NASDAQ:...

Wednesday, August 4, 2021, 02:38:00 PM

Robinhood Sees Crypto Revenue Fall 55%, Still Eyes Europe Expansion

Robinhood (NASDAQ: HOOD) shares experienced over 8% decline in after-hours trading on Tuesday following the...

Wednesday, November 8, 2023, 07:46:48 AM

Robinhood Lures Traders With Cash Credits Just as $1,400 Stimulus Checks Arrive

Just as millions of qualifying Americans are set to receive their $1,400 stimulus check from...

Friday, March 19, 2021, 02:41:00 PM

Robinhood Revenues Likely To Decline Markedly on Sequential Basis

Robinhood Markets Inc. (NASDAQ: HOOD) plans to release 3Q 2021 earnings on October 26, and...

Saturday, October 16, 2021, 09:00:00 AM

Robinhood Sent Crashing Amid Reports Hackers Stole Internal Security Tools to Access Users’ Accounts

Shares of Robinhood (NASDAQ: HOOD) were sent into a nosedive Wednesday afternoon, after reports emerged...

Thursday, November 11, 2021, 02:53:00 PM