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Robinhood Considers Bringing Back User Trading Data

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Robinhood Considers Bringing Back User Trading Data

Popular trading platform Robinhood is considering making its customer trading data public after shutting it down two months ago.

What Happened: Bloomberg reports that Robinhood is deciding whether to make its user trading data public again.

“We’re looking into it,” co-founder Vladimir Tenev told Bloomberg.

Tenev said he wants to get the content right, after it was removed due to third-party platforms using the data in ways that could be misunderstood.

Tenev also wants to make sure the proper safeguards are in place to protect user data, according to Bloomberg. 

“We hear the desire to have some of that data available again.”

Related Link: 50,000 Robinhood Traders Add Rocket Companies On IPO Debut

Why It’s Important: As one of the most popular trading platforms, access to trading data from Robinhood could provide a snapshot of what the top-traded stocks and most-held ones are among retail traders.

“It’s interesting from an information and educational standpoint,” Tenev said.

Robintrack.net, a website that previously shared the data from Robinhood, created sections like a leaderboard and popular changes.

A newsletter from Robintrack also shared popular changes or price movements in widely held stocks.

The last newsletter published based on Robinhood data highlighted a 1,400% increase in Eastman Kodak (NYSE: KODK) shares and over 86,000 Robinhood traders buying the stock.
Trends can also show where money is moving. The same newsletter showed a trend of Robinhood traders shifting to gold and silver via the SPDR Gold Trust ETF (NYSE: GLD) and iShares Silver Trust ETF (NYSE: SLV).

In August, Robinhood reported daily average revenue traders (DART) of 4.3 million for the second quarter. This figure was well ahead of Charles Schwab Corporation (NYSE: SCHW) and E-Trade, with 1.8 million and 1.1 million DARTs, respectively.

The total from Robinhood was more than double the rate it saw in the first quarter.

TD Ameritrade Holding Corporation (NASDAQ: AMTD) came closest with 3.34 million for the companies that reported DARTs.

What’s Next: Robinhood said if the platform is restored, it could come as an in-app offering.

Robinhood has said it will not sell the information to hedge funds or institutional investors.

A recent $200-million funding round valued Robinhood at $11.2 billion. The company continues to be a candidate for an IPO or acquisition due to its massive growth.

Photo courtesy of Robinhood. 

 

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