[GAM] US securities industry’s’reddit stock’ transaction blocked due to overheated speculation

[편집자] This article is a premium article that was released to GAM (Global Asset Management),’Helper of Overseas Stock Investment’ at 00:20 am on January 29th. When you sign up as a member at GAM, you can view premium articles for 500 overseas events for free.

[뉴욕=뉴스핌] Correspondent Hwang Sook-hye = Robin Hood, a free stock trading platform in the US, considered a hangout for ant investors, has blocked the trading of stocks that have surged through speculative call options such as Game Stop (GME) and AMC (AMC).

Following on-line securities firms Charles Schwab and TD Ameri Trade, it is a move to actively respond to the abnormal overheating of the top short selling stocks.

Criticism about speculative transactions spread not only on Wall Street but also in the US politics as investors showed signs of widening the situation, such as the spread of movements to predict the stocks that are likely to be the next target following the game stop.

According to major foreign media on the 28th (local time), Robin Hood blocked trading of stocks that caused a surge in stock prices, including Gamestop.

In addition to GameStop, the stocks included stocks that showed vertical rise in short covering, such as Blackberry (BB), AMC, and Bed Bath and Beyond (BBBY).

On this day, Robin Hood members tried to trade so-called’reddit target’ stocks, including Gamestop, but received a notice from the company stating that’the stock could not be traded’.

Robin Hood Stock Trading App [출처=업체 홈페이지]

Earlier, Robin Hood said it plans to increase the trading margin between Gamestop and AMC to 100%. On this day, the company is spared no words about blocking transactions.

The day before, Charles Schwab and TD Ameritrade took the same steps. The decision to limit trading in stocks that have shown a three-digit spike in stock prices in the last week.

Charles Schwab acquired TD Ameritrade last year, but each retains its original trading platform and brand.

The company has avoided commenting on specific transaction restrictions, but has revealed that it can take measures such as increasing transaction margin and restricting certain types of transactions.

Along with this, another brokerage brokerage, Interactive Brokers, has settled options trading using certain stocks as underlying assets, such as AMC, Blackberry, Express (EXPR), Gamestop, and Koss (KOSS).

Interactive Brokers explained that the decision was due to the soaring volatility of the stock market due to speculative call options trading.

Along with this, the company announced that it increased the margin for taking the long position of the stock to 100% and that for the short position it has increased significantly to 300%.

The company said it plans to continue controlling such transactions until the disruption in the stock market triggered by speculators subsides.

Weibul also took the same step. The decision not to allow short positions on highly volatile stocks to limit intraday trading risk.

Meanwhile, it was estimated that the trading accounts of private investors held by Robin Hood exceeded 13 million. The company was sued last month by the Massachusetts state government for encouraging speculative transactions by so-called ant investors and destroying the stock market order.

[email protected]