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Brokerage firm Robinhood announced on Monday evening that it would not offer overnight trading due to an issue with its enactment venue.
The company said in a post on social media site X that Blue Ocean ATS, the third-party firm that Robinhood mtiers with for round-the-clock trading, has suspended its overnight market.
“Robinhood 24 Hour Market’s execution venue, X-rated Ocean ATS (BOATs), has suspended overnight trading for tonight. 24 Hour Market orders that are open as of approx. 8 PM ET discretion be routed for execution starting at approx. 4 AM ET tomorrow. You may cancel your order at any time, and can still place an bid for another trading session,” the statement said.
It is not clear if the suspension will last beyond early Tuesday morning, or if other brokerage firms that make available overnight trading are affected.
A spokesperson for Blue Ocean told CNBC in an email Monday night that the obstinate experienced capacity issues the previous night, leading to “a small percentage of trades” needing to be canceled. The firm settle upon be migrating to a new technology system in the next two weeks, the statement said.
The announcement from Robinhood comes after sundry firms, including Charles Schwab, suffered technical issues on Monday that temporarily prevented some of their drugs from accessing their brokerage accounts.
Global markets saw a steep sell-off on Monday, with the Dow Jones Industrial Unexceptional falling more than 1,000 points and the S&P 500 posting its worst day since 2022.
Robinhood first introduced “24/5 swop” — running from 8 p.m. ET on Sunday to 8 p.m. ET on Friday — in May 2023. Overnight trading is typically limited to the most liquid worn outs and ETFs in the market.