Robinhood’s latest attempt to expand into sports event contracts has hit a regulatory roadblock. The Commodity Futures Trading Commission (CFTC) has formally requested that the company halt customer access to its Pro Football Championship market. This decision affects users who had already placed trades, with options available to close or hold their positions.

  • CFTC formally requested Robinhood Derivatives (RHD) to stop offering sports event contracts, citing regulatory concerns. Robinhood has suspended the rollout of the Pro Football Championship market in response.
  • The market was only available to about 1% of Robinhood customers before the suspension. Traders who participated can either close their positions or let them reach resolution.
  • Robinhood expressed disappointment over the decision, stating that they had been in regular communication with the CFTC. The company had advocated for balanced regulation through roundtable discussions and written feedback.
  • RHD plans to continue working with the CFTC and aims to introduce a more comprehensive event contracts platform later in the year. Despite the setback, the company remains committed to expanding in the futures and derivatives markets.

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