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- Robinhood has resumed regular service after an outage on Monday locked users out of their accounts.
- The “system-wide outage” kept clients from securing gains during Monday’s broad market rally. The S&P 500 jumped 4.6%, bouncing back from its worst week since 2008.
- Users most affected by the error may be options traders, as Robinhood was forced to either exercise or assign any call or put options at least 1 cent in the money.
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Robinhood has resumed regular services after a “system-wide outage” locked users out of their accounts on Monday, according to an email.Â
The issues kept clients from securing profits during Monday’s market rally. Stocks soared the most in 12 years as investors bet on new stimulus measures from central banks to combat coronavirus risks. The S&P 500 closed up 4.6%, while the Dow Jones Industrial Average ended the day up nearly 1,300 points, or roughly 5.1%.
The rebound followed US stocks posting their worst week since the 2008 financial crisis to close out February. Volatility sourced from escalating coronavirus fears pushed wary investors out of equities and into safe-haven assets including gold and Treasury bills.
Robinhood attributed the Monday outage to an infrastructure “instability” that kept systems from communicating with each other. The issue prevented clients from accessing its app, website, and help center. Client funds are safe and no personal information was affected by the error, the company said.
“When it comes to your money, issues like this are not acceptable. We realize we let you down, and our team is committed to improving your experience,” Robinhood wrote in an early Tuesday email.
Users most affected by the outage may be options traders, as the brokerage was forced to handle contracts expiring Monday in an unconventional manner. Robinhood exercised any long, or call, contracts that were at least 1 cent in the money before expiration, as clients were unable to exercise the options on their own.
Any short, or put, options in the money “were likely assigned,” the company said, meaning users would need to sell the underlying security at the price set forth in the contract.
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