An alarming series of breakdowns baffled traders this week. As two of the most popular stocks, Apple and Tesla, split at the start of the week, thousands of U.S. retail investors couldn’t use their Robinhood or Schwab brokerage accounts.
Increased trading precipitated by Apple Inc. and Tesla Inc. share splits contributed to problems at Robinhood Markets and Charles Schwab Corp. when markets opened in New York on Monday, according to people familiar with the matter. Retail clients of Vanguard Group, TD Ameritrade Holding Corp.and Fidelity Investments also experienced disruptions.
While most of the issues were resolved by midday, the interruptions sent a shudder across Wall Street, where professionals have come to rely on the zeal of individual traders to propel a wildly volatile year.
Robinhood experienced a technical problem that caused delays to customer order status updates, though it didn’t face a system-wide outage, a spokeswoman said… Schwab made a change to the storage systems it uses to display price quotes, spokeswoman Mayura Hooper said. That clashed with Monday’s heightened volumes around the splits and touched off an error, another person familiar with the matter said. The issue wasn’t overall capacity, Hooper said.
MacDailyNews Take: Splits hapen.