Robinhood (HOOD.US) Launches Innovative Products Again: Weekend Stock Trading, Performance Contracts, and Crypto Perpetual Futures

The Zhitong Finance App learned that Robinhood (HOOD.US) plans to launch weekend stock trading, which is the first in the modern US market. The brokerage firm, which is one step ahead in extending retail trading hours, said on Tuesday that its clients will soon be able to trade a basket of selected stocks and exchange-traded funds (ETFs) over the weekend, thus further extending the current trading period from 8 p.m. on Sunday to 8 p.m. EST on Friday. This function will be implemented by routing orders to trading places operated by Bruce Markets.

Robinhood's chief brokerage officer Steve Quirk said in a statement: “Breaking news won't wait for the opening bell.”

Robinhood has been growing in the highly competitive retail brokerage sector through rapid innovation and launch of consumer finance products, many of which are at the edge of the mainstream. The Menlo Park, California-based company said earlier this year that its fastest-growing business is the forecasting market and said it has opened up more agency AI trading tools to customers.

The company also introduced contracts linked to financial results. This is a new type of option contract launched by Cboe Global Markets Inc. that allows investors to bet on whether the company exceeds specific performance indicators, such as Tesla's car sales. According to the statement, these contracts will be available in the next few weeks and are still awaiting final approval from the US Securities and Exchange Commission (SEC).

Additionally, Robinhood customers will be able to trade perpetual futures on selected cryptocurrencies. This is a derivative contract with no expiration date, and some contracts provide up to 10x leverage. Perpetual futures will be offered through Bitstamp, an exchange acquired by Robinhood last year.

Jason Wallach, CEO of Bruce Markets, said: “Together with our partners, we are breaking the limitations of traditional market structures and redefining how the world trades.” Bruce Markets received undisclosed capital injections from Robinhood and Peak6 Investments, the majority shareholder, to help launch weekend trading.

The US stock market traditionally operates between 9:30 a.m. and 4 p.m. on weekdays. NASDAQ, NYSE, and 24x National Exchange all plan to launch 23 hours a day, 5 days a week trading session over the next few months. For example, NASDAQ will add a trading session from 9 p.m. to 4 a.m.

In some ways, Robinhood's move is a return to the old example. SEC Commissioner Mark Uyeda said at an event this month that the New York financial market implemented Saturday trading for 80 years and did not end until 1952.