AMC Entertainment Chief Executive Adam Aron demanded early Friday that Robinhood stop trading the stock tokens that reference his company's shares, and said AMC has asked its outside securities counsel to examine whether it can compel the broker to stop. Robinhood's chief legal officer, a former SEC commissioner, refused within hours.
A US-listed company has no say over the instruments. Robinhood's stock tokens are issued out of Jersey by an entity that Robinhood's own disclosures describe as unregistered and unsupervised, they are sold only to non-US persons, and only one firm is allowed to create them. Aron's complaint is that a market referencing AMC exists at all, and there is no registration, listing agreement or transfer agent relationship through which AMC could withdraw from it.
AMC shares traded at $2.765 at 11:14 a.m. ET Friday, up 8.9% from Thursday's $2.54 close, on 30.6 million shares against an average of 6.7 million, according to Nasdaq. The tokenized version changed hands at $2.75 across 30 pools on Robinhood Chain, with $200.8 million of 24-hour volume across 593,076 transactions on $6.7 million of liquidity, DEX Screener data shows. Robinhood shares fell 1.9% to $122.34.
