Robinhood Halts Overnight Trading Due to Issue With its Execution Venue
Brokerage firm Robinhood has announced a temporary suspension of its overnight trading services due to issues with its execution venue.
In a recent post on X, the company cited problems with Blue Ocean ATS, the third-party firm that handles round-the-clock trading for Robinhood, as the reason behind the decision.
“Robinhood 24 Hour Market’s execution venue, Blue Ocean ATS (BOATS), has suspended overnight trading for tonight. 24 Hour Market orders that are open as of approx,” the company wrote.
“8 PM ET will be routed for execution starting at approx. 4 AM ET tomorrow. You may cancel your order at any time and can still place an order for another trading session.”
A spokesperson for Blue Ocean ATS told CNBC that the firm faced capacity issues the previous evening, resulting in the cancellation of a small percentage of trades.
The spokesperson added that Blue Ocean ATS would be migrating to a new technology system within the next two weeks.
Robinhood’s announcement follows a day of technical problems for several brokerage firms, including Charles Schwab, which temporarily prevented some users from accessing their accounts.
The market turbulence on Monday saw the Dow Jones Industrial Average plummet over 1,000 points, while the S&P 500 experienced its worst day since 2022.
Robinhood introduced its “24/5 trading” service in May 2023, allowing users to trade from 8 p.m. ET on Sunday to 8 p.m. ET on Friday.
Robinhood 24 Hour Market's execution venue, Blue Ocean ATS (BOATs), has suspended overnight trading for tonight. 24 Hour Market orders that are open as of approx. 8 PM ET will be routed for execution starting at approx. 4 AM ET tomorrow. You may cancel your order at any time, and…
— Robinhood Help (@AskRobinhood) August 5, 2024
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