What’s the Story
Robinhood has cut down the list of restricted stocks from as many as 50 on Friday to eight starting Monday.
The stock trading app said on Friday it had put buying restrictions in place after its clearinghouse deposit requirements for equities increased last week . At the moment, customers can only buy one share of GameStop’s stock and five options contracts.
It was not because we wanted to stop people from buying these stocksRobinhood
For those whose current holdings already exceed the limits, their positions won’t be sold or closed, according to Robinhood.
Companies that still face limitations include GameStop, AMC Entertainment Holdings, Blackberry, and others. The limits may be “subject to change throughout the day,” according to the company’s website. It said the limits are subject to changing throughout the week.
Robinhood posted the following explanation on their blog to why the restrictions were necessary in the first place:
The amount required by clearinghouses to cover the settlement period of some securities rose tremendously this week. How much? To put it in perspective, this week alone, our clearinghouse-mandated deposit requirements related to equities increased ten-fold. And that’s what led us to put temporary buying restrictions in place on a small number of securities that the clearinghouses had raised their deposit requirements on.
Robinhood narrows trade restrictions list to 8 companies, including GameStop
Online brokerage Robinhood has cut down the list of its restricted stocks, from as many as 50 on Friday to eight starting Monday. Trade in short-squeeze names like GameStop has been limited due to last week’s explosive rallies.
Robinhood Narrows Trading Restrictions to Eight Companies
Rumors that the company was pressured by Citadel or other market makers to restrict trading on GameStop and other “meme stocks” are false, Robinhood CEO Vlad Tenev said on social audio app Clubhouse …