GameStop had another flow up day on Friday (GME GameStop Corp. 325.00 131.40 (+67.87%) 7:00 PM 01/29/21)
Interactive Brokers’ sent an email to account holders about the “Reddit stocks”- warning users about “unprecedented volatility in GME, AMC, BB, EXPR, KOSS and a small number of other U.S. securities that has forced us reduce the leverage previously offered to these securities and, in certain instances, limit trading to risk reducing transactions. ”The limits IBKR has placed have applied to all customers and were not limited to “retail clients” or any other group.”
Robinhood’s limit list up to 50, Starbucks joins GameStop at 1: Robinhood has widened its list to 50 names, including Starbucks (NASDAQ:SBUX), Beyond Meat (NASDAQ:BYND) and GM (NYSE:GM).
Webull, and others brokerage firms closed down the buying feature for GameStop (GME) stock Thursday, drawing bipartisan attacks from politicians and criticism from customers who wanted the same treatment to trade as hedge funds betting the stock would fall.
Investors are taking their concerns to Twitter and Reddit boards.
Even Discord has gone corpo …
— Elon Musk (@elonmusk) January 28, 2021
Yahoo Finance reports: The bad publicity prompted the former SEC chief economist to contrast the situation with the 2008 financial crisis, where institutions actually did not step in to stop volatility in the markets.“Here we have a situation where a firm, under its contractual structures, steps in,” he said of the brokerages’ moves to halt buying.
The SEC released a Joint Statement Regarding Ongoing Market Volatility
Acting Chair Allison Herren Lee
Pete Driscoll, Director, Division of Examinations
Christian Sabella, Acting Director, Division of Trading and Markets
Jan. 27, 2021-We are aware of and actively monitoring the on-going market volatility in the options and equities markets and, consistent with our mission to protect investors and maintain fair, orderly, and efficient markets, we are working with our fellow regulators to assess the situation and review the activities of regulated entities, financial intermediaries, and other market participants. Source SEC.gov