Robinhood and Interactive Brokers limit GameStop tradesBusiness | 28 Jan 2021 10:27 pm
Amid the flurry of speculative activity in GameStop brokers took steps to restrict the trading in GameStop stock and options and other related securities, CNBC reports
Free-stock trading pioneer Robinhood and Interactive Brokers both took steps to curb the wild trading activity in heavily shorted names. After rising above US$500 in the premarket, GameStop is tanking more than 20 percent ahead of the open.
This follows similar steps taken from Charles Schwab and TD Ameritrade on Wednesday.
Here is the statement by Robinhood:
“We continuously monitor the markets and make changes where necessary. 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. We also raised margin requirements for certain securities.”
Here is the statement to CNBC from Interactive Brokers:
“As of midday yesterday, (1/27/2021) Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice. We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only. We will continue to monitor market conditions and may add or remove symbols as may be warranted.”