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Bloomberg
Robinhood restricts trade restrictions to eight companies
(Bloomberg) – According to an update on its website, Robinhood Markets Inc. has reduced the number of companies subject to trading restrictions to eight from 50, ahead of Monday’s trading session, according to an update on its website. BlackBerry Ltd., Express Inc., Genius Brands International Inc., Koss Corp., Naked Brand Group Ltd. and Nokia Oyj. Opening of new positions in these stocks is limited, according to the Robinhood website, which lists the number. maximum stock and options contracts that each user can hold. For those whose current holdings are already above the limits, their positions will not be sold or closed. The company has put in place purchase restrictions after the clearinghouse deposit requirements for stocks increased last week. , the company said in a blog post on Friday. “It wasn’t because we wanted to prevent people from buying these stocks,” Robinhood said. The trading app, popular among retail investors who helped push GameStop stock to rise, has been criticized across the political spectrum for its decision to restrict trading in high-profile stocks which surged afterwards. have been touted on social networks. Senator Elizabeth Warren on Sunday called for a broader review by the United States Securities and Exchange Commission of recent trading moves and said that a broker like Robinhood that invites many individual investors must operate “by certain rules of based”. Illegal: Fmr. SEC Tip (video) “You can’t do this in the middle of a business cycle,” Warren said of Robinhood’s trading limits on CNN’s “State of the Union”. “It’s not about protecting people from bad trades. It’s about keeping the playing field level. A Robinhood rep declined to comment beyond updating the website. Several lawsuits were filed against Robinhood, mainly alleging restrictions on the trading platform which amounted to breach of contract. Nonetheless, investors who have sued online brokerage houses for claiming they were unfairly blocked from trading in stocks may have a long wait for their case to be resolved. (Updates with more details throughout) ahead with the most trusted source of business information. © 2021 Bloomberg LP
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