An army of retail investors is “holding” short-selling hedge funds of video game retailer GameStop (GME), but also causing system load and even financial pressure on brokers and trading platforms. Robinhood, a popular trading platform for retail investors, once restricted trading in GME and was criticized by retail investors and even intended to file a lawsuit, although the platform resumed trading in GME on Friday (29) to a limited extent, but at the same Time, the number of shares with trading restrictions was expanded from 13 to 50.
According to the latest restrictions, Robinhood customers can only buy 1 share of GME and 5 GME options contracts, if there is already 1 share of GME, you can not buy more, the news dragged GME shares Friday from an intraday high of $413.98, the market closed narrowed to $325, up 67.87%.
The list of other restricted shares also includes American Airlines, artificial meat maker Beyond Meat, General Motors (GM) and Starbucks, all of which can only buy one share, while Nokia, which has a lower share price, can buy five shares.
It is said that a number of brokerages previously imposed trading restrictions mainly by the pressure of the clearing company, and demanded to increase the margin. Sources said Robinhood has received more than $1 billion in capital injections from existing investors and withdrew part of its bank standby credit to ensure that it has sufficient cash to meet the stock settlement.
The SEC said Friday it was reviewing potential misconduct and the brokerage firm’s decision to restrict trading in some shares.
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