-0.12%
Securities now lifted include Tootise Roll, American Airlines, Starbucks, General Motors, Beyond Meat, Bed Bath & Beyond and Rolls Royce, among others.
According to the company s support page, investors will be limited to 10 shares and 10 options contracts of AMC, 700 shares and 700 options contracts of BlackBerry, 20 shares and 20 options contracts of Express Inc., 1 share and 5 options contacts of GameStop, 600 shares and 600 options contracts of Genius Brands International, 2 shares of Koss Corp., 600 shares of Naked Brands Group and 2,000 shares and 1000 options contracts of Nokia Corp.
Photo courtesy of Robinhood
The new restrictions, which are aggregate limits for each security and not per-order limits, include shares and options contracts that an investor already holds. These limits may be subject to change throughout the day.
Robinhood CEO denies conspiracy theory claims that hedge funds pressured him to halt GameStop trading and lock out Reddit traders as he insists he made right decision
Robinhood CEO Vlad Tenev on Friday called claims that hedge funds prompted his company to halt trading on GameStop a conspiracy theory Our decision to temporarily restrict customers from buying certain securities had nothing to do with a market maker or a market participant, Tenev said
He claimed no one put pressure on the company or asked them to halt trading It was entirely about market dynamics and clearinghouse deposit requirements, as per regulation, he added
Trading app Robinhood late on Friday restricted purchases of 50 different stocks
List included meme stock GameStop but also General Motors and Starbucks
It followed a wild week of trading fueled by anti-hedge fund Reddit insurgency
It became clear that Robinhood was under severe strain with its cash reserves
Company is required to place deposits with clearing houses to cover trades
Robinhood said Saturday its deposit requirements increased ten-fold this week
Company tapped credit lines for $600M and received $1B investor bailout