After removing GameStop, AMC, BlackBerry, and Nokia from its platform, getting slapped with a class-action lawsuit, and flooded with 1-star reviews on the Google Play Store, Robinhood is starting to have a change of heart. The trading platform announced that, beginning Friday, it will allow “limited buys” on restricted stocks, like GameStop, AMC, and others. The Verge reports: “Starting tomorrow, we plan to allow limited buys of these securities,” the company said in a blog post. “We’ll continue to monitor the situation and may make adjustments as needed.” In its statement, Robinhood emphasized that the decision to halt purchases was made because of internal risk to the company, not as a response to outside pressure from other financial actors.
“As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment,” the post argues. “To be clear, this was a risk-management decision, and was not made on the direction of the market makers we route to.”
of this story at Slashdot.
Source:: Slashdot