IG Group restricts trading on GameStop and AMC due to ‘extreme volatility’ by Reuters

IG Group restricts trading on GameStop and AMC due to ‘extreme volatility’ by Reuters

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

(Reuters) – The online trading platform IG Group Holdings Plc said on Saturday it would restrict any new positions in GameStop Corp (NYSE 🙂 and AMC Entertainment (NYSE 🙂 due to the “extreme volatility” of the market.

“Due to extreme volatility and to prioritize the service we offer to our existing customers, we are not allowing any new positions to be opened in the shares of US GameStop and AMC Entertainment,” said London-based IG in a tweet https: // twitter .com / IGcom / status / 1355507435453243402.

“These restrictions will be reviewed regularly,” he added.

The company is the latest trading platform to announce restrictions after an increase in volumes in the past few days, stemming from calls on social media by individual investors to trade shares like GameStop and AMC, which were being heavily shorted by hedge funds.

On Friday, the U.S. Securities and Exchange Commission entered the fray between small investors and Wall Street hedge funds, alerting brokers and social media traders who were on the alert for any irregularities in this week’s roller coaster trade.

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