Former Securities and Exchange Commission chairman Harvey Pitt reacts to lawmakers who ask the government to get involved in restrictions on stock trading.
The online trading platform IG Group Holdings Plc said on Saturday that it will restrict any new positions at GameStop Corp and AMC Entertainment due to the “extreme volatility” of the market.
“Due to the extreme volatility and to prioritize the service we offer to our existing customers, we are not allowing any new positions to be opened in American stocks GameStop and AMC Entertainment,” IG, based in London, said in a tweet.
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“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.