Robinhood updated its list of restricted shares, and the list was much smaller than the 50 shares it was on Friday.
What happened: Robinhood updated the “Changes due to continued market volatility” page on his website, where he maintains a list of the stocks that imposed purchase restrictions.
The list now shows only eight shares, and restrictions on some have been loosened. Nokia Oyj (NYSE: NOK), for example, went from a limit of five shares to 2,000.
GameStop’s restrictions, however, remain on an action contract and five options per user.
Restrictions include adding shares and options to positions. They do not affect positions already owned by a trader. But if these positions exceed these listed limits, the trader will not be allowed to add more.
Fractional stock purchases are also ruled out.
“These limits may be subject to change throughout the day,” notes the page.
Because it’s importants: The trading platform has been popular with traders who have raised their stock prices in recent weeks in big short-term games. Short sellers lost their footing in their positions against GameStop Corp. (NYSE: GME), AMC Entertainment Holdings Inc (NYSE: AMC) and other shares.
Robinhood said on Friday that it was forced to put the restrictions in place because the extreme volume and volatility put it at risk of violating its deposit requirements with clearing centers – part of the markets backend pipeline used to settle trades.
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