United States lawmakers are set to grill Robinhood CEO Vlad Tenev over the GameStop trading frenzy at a Congressional hearing later today.
In his prepared remarks, Robinhood CEO appeared to place responsibility for the platform’s stock trading suspensions on the U.S. Securities and Exchange Commission. Tenev said that the company blocked trading to meet “regulatory deposit requirements” defined by the SEC. The exec specifically criticized an SEC rule that requires equities transactions to clear over two days:
“It takes several days for the clearinghouse to process the transaction […] This is known as “T+2” settlement, denoting the trade date plus a two-day ‘settlement period.’ This T+2 settlement cycle is codified by SEC Rule 15c6-1(a), which prohibits broker-dealers from effecting the purchase or sale of a security later than the second business day after the execution of the trade.”
Tenev called on the authority to modify its trading rules to allow clearinghouses to support real-time settlement instead of a two-day