London-based trading platform operator IG Group Holdings Plc said today that it will halt all new positions in GameStop Corp. GME and AMC Entertainment Holdings Inc. AMC.
What Happened: The company announced this today in a tweet, citing "extreme volatility."
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.
— IG (@IGcom) January 30, 2021
These restrictions will be reviewed regularly.
Why It Matters: IG is the latest platform to use these restrictions.
Robinhood did so on Thursday and immediately got hit with blowback far and wide. This forced it to have to explain in a blog post last night that its decision had to do with avoiding a breach of its deposit requirements with clearinghouses — not part of a conspiracy to soak everyday traders at the behest of powerful Wall Street interests.
Photo by Jon Tyson on Unsplash.
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