Odaily Planet Daily reports that Robinhood CEO Vlad Tenev announced that the company’s brokerage and clearing division, Robinhood Securities, has been approved to serve as an IPO underwriter. It is currently unclear which regulatory body granted this approval, but IPO-related regulation typically involves FINRA and the SEC.
This initiative represents an enhancement to Robinhood’s existing IPO Access service. Through IPO Access, Robinhood users can participate in subscribing to shares of upcoming public companies. Underwriters play a more central role, not only assisting private companies with their listing process but also acting as intermediaries between issuers and investors. (Barrons)