Photographer: Gabby Jones / Bloomberg
Photographer: Gabby Jones / Bloomberg
Robinhood Markets Inc. reduced the number of companies with trade restrictions to eight from 50, ahead of Monday’s trading session, according to an update of its website.
The current list includes GameStop Corp., AMC Entertainment Holdings Inc., BlackBerry Ltd., Express Inc., Genius Brands International Inc., Koss Corp., Naked Brand Group Ltd. and Nokia Oyj.
According to the Robinhood website, the opening of new positions in these stocks is limited, indicating the maximum number of shares and option contracts that each user can hold. In the case of current holdings that already exceed the limits, their positions will not be sold or closed.
Robinhood established purchase restrictions following its deposit requirements for equities increased last week, the company said in a blog post on Friday. “It wasn’t because we wanted to prevent people from buying those shares,” Robinhood said.
The trading app, popular with retail investors who favored the rise in GameStop shares, has been he was within reach of the entire political spectrum for his decision to restrict high-flying stock trading which increased after being promoted on social media.
Senator Elizabeth Warren on Sunday called for a broader review by the U.S. Securities and Exchange Commission on recent trading changes and said a broker-broker like Robinhood that invites many individual investments to operate “under some basic rules “
Robinhood’s trade restrictions are not illegal: Mr. SEC Adviser (video)
“You can’t do that in the middle of a business cycle,” Warren said of Robinhood’s trade limits on CNN’s “State of the Union”. “It’s not about protecting people from bad business. It’s about keeping the playing field at the same level. “
A Robinhood representative declined to comment beyond the website update.
Several lawsuits have filed lawsuits against Robinhood, alleging restrictions by the trading platform that led to a breach of contract. However, investors who sued online brokers for claims that had unfairly blocked them from trading shares can wait long before resolving their cases.
– With the assistance of Annie Massa and Meghan Genovese
(Updates with more details everywhere)