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IG Group restricts trading on GameStop and AMC due to 'extreme volatility'

Published 01/30/2021, 10:44 AM
Updated 01/30/2021, 10:45 AM
© Reuters. FILE PHOTO: A GameStop store is seen in New York

© Reuters. FILE PHOTO: A GameStop store is seen in New York

(Reuters) - Online trading platform IG Group Holdings Plc said on Saturday it will restrict any new positions on GameStop Corp (NYSE:GME) and AMC Entertainment (NYSE:AMC) due to "extreme volatility" in the market.

"Due to extreme volatility, and to prioritise the service we give our existing clients, we are not allowing any new positions to be opened on the US stocks GameStop and AMC Entertainment," London-based IG said in a tweet https://twitter.com/IGcom/status/1355507435453243402.

"These restrictions will be reviewed regularly," it added.

The company is the latest trading platform announcing restrictions following a surge in volumes in recent days stemming from calls on social media by individual investors to trade stocks like GameStop and AMC that were being heavily shorted by hedge funds.

© Reuters. FILE PHOTO: A GameStop store is seen in New York

On Friday, the U.S. Securities and Exchange Commission waded into the battle between small investors and Wall Street hedge funds, warning brokerages and social-media traders it was on alert for any wrongdoing in this week's roller-coaster trade.

Latest comments

r/Wallstreetbets Has about 5.5 million new users on the forum that is an estimated $1 billion more or less of capital raised to buy 3 stocks. At the same time might hurt Wall Street Monday and cause a sell off on the broader market the more news coverage Wallstreetbets gets and popularity the more cash they have on hand. This could start a financial crisis as banks and funds lose money. I am a retail investor if they get tired of gamestop they could go on and hunt more shorted positions which are priced properly based on fundamentals because of the frenzy that's going on causing fear across all investors which will result in the Sec taking strict measures to stop the madness in defense of the big boys for the sake of the financial institution of America they will tell you. I advice to use money you can afford to lose not your life savings please. It a full blown out war next week
Not a single thing wrong when people see an investment opportunity and takes advantage or those dum enough to create it. That is capitalism at its finest.
Apes together strong!
This is the way
This is why people need to use decentralized trading platforms. Cryptocurrency is the future as it is not controlled by any institution!
cryptocurrency is worse. its equally volatile.
and it will be controlled by that insitution called the Government soon enough
Love the fact one hedge fund had to file bankcurpcy( 60 billions dollar) another 4 hedges had a massive lost. America is always out doing itself
They didn't lose 60 billion. That was the whole short market. Get it straight
shorties were forced to cover. Most shorties were hedge funds. This feel good when the average Joes r/o/b wall street.
Agreed, op indicated a single hedge lost 60b
This is why people need to use decentralized trading platforms. Cryptocurrency is the future as it is not controlled by any institution!
then find another brokerage. people in the UK, you heard the news
Btw, folks, “hedge funds” could sit on long side of “gamestop” trades too. Give it a thought.
 I don’t short, sorry to disappoint you. Do you always try going personal instead of arguing on topic?
i went thru all the institution holding list. None is hedge fund. If u r not them, why u r defending them?
 Please. Institution holding lists are quarter old at least. Take it easy and stop looking for  “hedge funds” under your bed.
Any restrictions imposed on retail investors need to also be imposed on hedge funds
and the same restrictions apply to them too
good to know. Interactive Brokers here have different rules. I thought they r under the same group.
my bad, IBG is interactive brokers group. I missed the B. IBG is a wall street crook.
Not an open market
Things like this happened on market all times. It is getting more common now, because too many folks sit at home with pockets filled by government stimulus. These silly rallies make money to investors that had positions in stocks before the rally and take profits during the rally. On the other hand, folks buying during the rally will be left with empty bags.
You are right about the hedge fund however I am not really sure why you are assuming he is a boomer.  Shaming people for being from an older generation like this does nothing but expose your own ignorance.
Clearly but some of them don't really want the money, they just want to send a message. A lot of them say if they lose, they only lose few bucks.
 That’s media narrative, silly one. Someone makes money on it, while some fools may believe in “sending a message”.
Ask yourself, who stands to gain from all these trading restrictions?
Restriction is from buying but not selling. That is the problem. Price will drop like a rock because buyers cant buy.
More accurately, the restriction is on opening new trades. If you are short you are allowed to buy to close.
We can hold
short were forced to cover to fuel the rally. There is no shorties left.
Crooks, this is market manipulation.
The crooks are the hedge fund managers who over-shorted these stocks and created this situation.
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