GameStop‘s stock market The adventure continues, with stocks jumping more than 70% at the start of trading on Friday. The spike comes when Robinhood opens “limited purchases” of GameStop, AMC and other stocks after the trading app restricted certain transactions the day before. However, the app on Friday confirmed that it temporarily shut down immediate purchasing power for cryptocurrencies due to “extraordinary market conditions”, such as the price of bitcoin and – a digital coin inspired by a popular dog meme – also rose sharply.
Behind the meteoric rise of GameStop, dogecoin and other stocks:.
The uprising experienced a hiccup when AMC and other companies. , prevented customers from buying more shares in several companies, but it allows “limited purchases” from Friday.found out some had restricted securities transactions at the type of video game retailer, as well as the film chain
On Thursday morning, Twitter users began posting screenshots of their Robinhood app that showed a message appended to the pages of GameStop, AMC, Nokia and Bed, Bath and Beyond: “This stock is not supported on Robinhood.”
Robinhood explained the move in a blog post before trading opened. “In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK,” the company wrote. In addition to AMC; Bed, Bath and Beyond; GameStop and Nokia, the companies listed by ticker symbol are phone maker BlackBerry, fashion retailer Express, headphone maker Koss, and underwear company Naked Brand Group.
Robinhood later sent an email to customers saying it would allow “limited buys” of those securities starting Friday. It made the decision because of US Securities and Exchange Commission regulations.
Robinhood CEO Vlad Tenev went on CNBC Thursday afternoon to explain why the investment app decided to restrict users from purchasing shares of GameStop, AMC and other companies.
“In order to protect the firm and protect our customers, we had to limit buying in these stocks,” Tenev said. He also denied there were any liquidity issues with the company.
The @wsbmod Twitter account, which is tied to a Reddit community that’s been , said the freeze harmed small traders and favored the Wall Street establishment. “Individual investors are being stripped of their ability to trade on [the Robinhood app]”, so tweeted.” Meanwhile, hedge funds and institutional investors may continue to trade as usual. “
A class action was filed Thursday in the Southern District of New York.
Webull, another investment service, tweeted on Thursday that it had begun restricting trading in shares of GameStop, AMC and Koss. Webull cited the “extreme volatility” of the shares when it comes to limiting user transactions to closing positions. It was removed later these restrictions.
USA: s rep. Rashida Tlaib, a Democrat from Michigan, called on the House Financial Services Committee to hold a hearing on Robinhood’s actions. She described its efforts as “market manipulation”.
Other members of Congress, including, agreed to the call.
TD Ameritrade, another broker, said on Wednesday that it would place restrictions on stock trading for GameStop, AMC and others. The brokerage firm confirmed the restrictions and said it made the decisions “by an abundance of caution among unsurpassed market conditions and other factors.”
“To reduce the risk to our business and customers, we have introduced several restrictions on certain transactions” in GameStop, AMC Theaters “and other securities,” says TD Ameritrade.
Nasdaq CEO Adena Friedman reported CNBC on Wednesday that the stock exchange would stop trading and investigate whether it believed that someone was manipulating the market. AMC is listed on Nasdaq, while GameStop is traded on the New York Stock Exchange.
William Galvin, secretary of the Commonwealth of Massachusetts, said Barron’s the New York Stock Exchange “should consider simply shutting down [GameStop] for one month. ”
The SEC is also monitoring the situation.
“We are aware of and actively monitor the ongoing market volatility in the options and stock markets, and are consistent with our mission to protect investors and maintain fair, orderly and efficient markets,” the SEC said in a statement. statement Wednesday. “We are working with our other regulators to evaluate the situation and review the activities of regulated entities, financial intermediaries and other market participants.”
White House “monitors situation” White House Press Secretary Jen Psaki on Wednesdays.
Correction, January 28: An earlier version of this story incorrectly stated that TD Ameritrade had restricted new purchases of GameStop and AMC shares. It restricts some business, but users can still buy new shares from these companies.
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