[단독]Shinhan Financial Group, measures to block transactions in the event of a sharp rise in the’Game Stop’ stock

As Shinhan Investment Corp. suddenly blocked trading of Game Stop (GME) stocks listed on the U.S. New York Exchange, domestic investors suffered a huge loss. On this day, the gamestop stock price plummeted to 67.59% during the day, but losses increased like a snowball due to the blocking of the sale of the stock in the Shinhan Gold Investment Home Trading Service.

Shinhan Investment Corp. said in its home trading service’Shinhani’ and’Shinhan Alpha’ that it is impossible to order the corresponding item due to restrictions on game stop orders from local securities companies in the United States. ”Issued an emergency notice. The reason was that a local broker in the U.S. trading with Shinhan Investment Corp. refused to place an order for Gamestop. In the case of other domestic securities companies other than Shinhan Investment Corp., it is believed that the transaction has proceeded normally.

Shinhan Geumtu has taken measures so that the broker can be traded by changing the broker to only users who inquire over the phone. However, as user protests rallied, the phone connection was not smoothly performed, and the extent of losses continued to increase. On this day, GameStop closed at $193, down 44% from the previous trading day.

Gamestop’s stock price, which was only $19 as of the beginning of this year, soared 1700% to $347 on the 27th, earning the nickname “the second Tesla” from Seohak ants. This is because the confrontation between institutional short selling forces and individual investors intensified.

Hedge fund companies bet huge sums on the fall of GameStop, but individual investors viewed the news that Ryan Cohen, co-founder of the pet shopping mall Chewy, was joining the board as a board member, and bought stocks in a group. As their purchases sharply surged in stock prices, hedge fund companies were pushed into a’short squeeze’ situation in which stocks that had been shorted at low prices became more expensive and sold. Eventually, hedge funds, such as Melvin Capital and Left, announced that they would stop short selling and raised a white flag from the ants.

As this situation continued, Robin Hood, a US free stock trading service, took measures to block purchases of some stocks such as Gamestop, AMC, and Blackberry on the 28th (local time). A spokesman for the White House said, “The White House’s economic team and Finance Minister Janet Yellen are watching not only the game stop, but also other companies whose stock prices have skyrocketed recently.”

On this day, GameStop stock prices plummeted, and investors filed a class action lawsuit claiming that Robin Hood deliberately restricted transactions in order to manipulate the market. As the U.S. Senate and House decided to hold a hearing on GameStop and other political pressures continued, Robin Hood announced that it would lift some restrictions on trading.

An official from Shinhan Investment said, “Because the situation occurred during the US stock market, physical response was difficult, so we took measures to change the local broker through telephone consultation.” In the case of investors who are clear to have lost due to this action, I will.”

Reporter Hyungdu Lee [email protected]