The online trading platform Robinhood has removed trading restrictions on GameStop Corp. shares. and AMC Entertainment Inc. on Thursday night.
“There are currently no temporary limits to increase your positions,” said Robinhood’s website late on Thursday.
Last week, Robinhood generated fury – and lawsuits – from some users by restricting trading to 50 highly volatile stocks that were heavily short. That list was reduced to eight on Sunday, and on Thursday only GameStop and AMC remained. The previous Thursday, GameStop had a purchase limit of 500 shares, while AMC had a limit of 5,500 shares.
The easing of restrictions comes at a time when the massive wave that suspended GameStop, AMC and others appears to be breaking amid increasing regulatory scrutiny. After reaching a record high of $ 483 on January 28, GameStop shares GME,
it sank 42% on Thursday to close at $ 53.50, and fell 84% this week. AMC of AMC shares,
fell 47% this week, closing Thursday with a 21% drop to $ 7.09.
Treasury Secretary Janet Yellen met with key financial regulators on Thursday and promised to protect investors and maintain “fair and efficient markets”.
The highly volatile trades were spurred on by online commentators, especially on Reddit, which bought shares in several companies to spoil short sellers’ positions.