Robinhood Faces SEC Probe on Compliance With Short-Selling Rule

Photographer: Gabby Jones/Bloomberg
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Robinhood Markets Inc. said it faces a US Securities and Exchange Commission investigation into the brokerage’s compliance with a short-selling rule.

The SEC’s enforcement division requested information about Robinhood’s adherence to Regulation SHO and matters related to securities lending and fractional shares, the Menlo Park, California-based company said Wednesday in a filing.