Online Trading Apps Attract Regulator’s Scrutiny After Robinhood Binge
- Regulator says it examining how risks are being disclosed
- Heightened attention comes amid GameStop trading frenzy
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Online trading apps with game-like features are getting increased scrutiny from the U.S.’s top brokerage watchdog, adding to regulatory headaches for Robinhood Markets and other firms that played key roles in last month’s frenzied buying of GameStop Corp.
The Financial Industry Regulatory Authority laid out its beefed-up focus on apps in its annual exam priorities, saying it would be closely monitoring how brokerages disclose potential risks and supervise their customers’ use of online trading tools, which have been embraced by an army of retail investors during the coronavirus pandemic.