Robinhood has detailed its latest step within the advanced quagmire of market manipulation that is this week’s GameStop hedge fund Reddit army debacle. Users will for the latest be restricted to retaining a single share of GameStop and dozens of other stocks.
Several stocks were restricted to 5 shares, and alternate recommendations contracts are likewise restricted on many of the most-traded stocks this week, such as AMC and Blackberry. Positions exceeding these amounts may now now not be automatically offered, but they are going to apply if the user goes beneath them and tries to catch again. Fractional shares are also prohibited.
Any other specifics about positions, expiring alternate recommendations contracts and so on can be display within the announcement and related FAQs.
Robinhood has said that it has halted and now restricted trading because of “financial necessities, including SEC accept capital obligations and clearinghouse deposits” — essentially, the quantity and value of the trading happening was past its ability to legally or realistically conceal. Trading of certain stocks was halted or restricted earlier this week, but the contemporary post details exactly which stocks are affected and how.
The company had to hastily raise funds totaling over a billion dollars from its existing investors after reportedly maxing out half a billion in credit strains.
With widespread outrage at the handling of the situation and the U.S. executive taking gape, it’s now now not really Robinhood’s troubles (now now not to mention other trading apps and platforms) are anywhere near over. With contemporary traits appearing seemingly every few hours, it’s hard to know how this particular story will way.