(Reuters) – IG Trading Holdings Plc online trading platform said on Saturday it would restrict any new positions on GameStop Corp and AMC Entertainment due to “extreme volatility” in the market.
“Due to the extreme volatility and to give priority to the service we offer to our existing customers, we do not allow the opening of new positions on US stocks GameStop and AMC Entertainment,” said London-based IG in a tweet. Here.
“These restrictions will be reviewed regularly,” she added.
The company is the latest trading platform announcing restrictions following the increase in volumes in recent days, resulting from calls on social networks of individual investors to trade shares such as GameStop and AMC, which have been sharply shortened by hedge funds.
On Friday, the US Securities and Exchange Commission entered the battle between small investors and Wall Street hedge funds, warning brokerages and social media traders that it is on alert for any wrong action in this week’s roller-coaster trade.
Reporting by Aakriti Bhalla in Bengaluru; Montage by Mike Harrison