Robinhood limits customers to a single share of GameStop and different shares – TechCrunch

Robinhood limits users to a single share of GameStop and other stocks – TechCrunch

Robinhood has detailed its newest step within the complex quagmire of market manipulation that’s this week’s GameStop hedge fund Reddit military debacle. Customers will for the current be restricted to holding a single share of GameStop and dozens of different shares.

A number of shares had been restricted to 5 shares, and choices contracts are likewise restricted on most of the most-traded shares this week, reminiscent of AMC and Blackberry. Positions exceeding these quantities won’t be routinely bought, however they’ll apply if the consumer goes underneath them and tries to purchase once more. Fractional shares are additionally prohibited.

Some other specifics about positions, expiring choices contracts and so forth could be discovered within the announcement and associated FAQs.

Robinhood has stated that it has halted and now restricted buying and selling because of “financial requirements, including SEC net capital obligations and clearinghouse deposits” — primarily, the amount and worth of the buying and selling occurring was past its capability to legally or realistically cowl. Buying and selling of sure shares was halted or restricted earlier this week, however the brand new publish particulars precisely which shares are affected and the way.

The corporate needed to unexpectedly raise funds totaling over a billion dollars from its current buyers after reportedly maxing out half a billion in credit score strains.

With widespread outrage on the dealing with of the scenario and the U.S. authorities taking discover, it’s unlikely Robinhood’s troubles (to not point out different buying and selling apps and platforms) are anyplace close to over. With new developments showing seemingly each few hours, it’s laborious to know the way this explicit story will develop.

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