Robinhood and Interactive Brokers took steps to curtail trading in several high-flying stocks, including GameStop and AMC Entertainment Holdings.
Robinhood restricted transactions on those stocks and others,
“In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice,” Interactive Brokers said in a statement.
Robinhood also restricted trading in shares of Nokia Oyj, which climbed 20% over the past three days.
“We’re committed to helping our customers navigate this uncertainty,” Robinhood said in the blog post.
Reddit users helped fuel a blistering rally in GameStop, the video game retailer, burning short sellers and hedge funds. The stock, which ended the year at $18.84 a share, posted whopping gains, climbing as high $513.12 in early trading Thursday.
The episode pitted enthusiastic amateurs against professional traders, resulting in
On Wednesday, Charles Schwab's TD Ameritrade also curtailed transactions on GameStop, AMC and other securities. Amid the heightened volatility, trading platforms including TD Ameritrade, Robinhood, Schwab and Fidelity all experienced technical problems.
--With assistance from Luke McGrath.