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Due to the run on individual stocks, including that of video game distributor GameStop, the Berlin online broker Trade Republic had restricted the trading of newspapers. After a break of several hours, this should be “entirely possible” again, as the company announced on Twitter.
Meanwhile, the execution of individual stocks by hobbyist traders from internet platforms like Reddit is charging the stock exchanges even more. Fearing the long-term consequences of the turmoil, investors are pulling out of the German stock market.
So far, the dangers to the financial system have been difficult to assess, said portfolio manager Thomas Altmann of investment advisor QC Partners. “The stock market has become the scene of a dispute between short sellers and private investors.”
Facebook shuts down popular stock trading group
In addition to GameStop, Blackberry, Nokia and AMC were also targeted by Robinhood investors. Two Robinhood investors quickly filed lawsuits in Illinois and New York over the restrictions.
Meanwhile, the world’s largest social network, Facebook, shut down the popular stock trading group Robinhood Stock Trades due to the hype from GameStop. The founder of the Wall Street Discussion Forum, Allen Tran, said he had received a notification from Facebook that the 157,000-member group would be banned for violating the rules. This step could also provoke more political explosives.
One of Robinhood’s co-founders, Vlad Tenev, defended the short-term shutdowns on Twitter and referred to the financial requirements of the Securities and Exchange Commission, including net worth. “We take seriously our responsibility to fulfill them.”
Therefore, the decision to restrict trade was made within the company and was not influenced by any market player. In the future, “limited purchases” should be allowed again.
