Robinhood Removes Trading Restrictions on Gamestop, AMC

Robinhood said on Thursday it has removed temporary trading restrictions on all stocks, including GameStop Corp and AMC Entertainment Holdings Inc

February 5, 2021 | AtoZ Markets – Robinhood Markets , a provider of stock trading platforms for individual investors, has lifted GameStop for video game sales and stock purchase restrictions for AMC Entertainment Holdings, according to an update on its support page.

Robinhood Lifts Trading Restrictions On All Stocks

Earlier in the day, Robinhood’s website showed that the trading limit on GameStop’s shares was set at 500, while for AMC the limit was set at 5,500 shares.

Trading restrictions on a few other stocks had been lifted on Wednesday.

“There are currently no temporary limits to increasing your positions,” Robinhood said Thursday night.

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Read also: SquaredFinancial Backs Retail Traders with Unrestricted Access to GameStop

Robinhood, one of the hottest venues in last week’s retail-trading frenzy sparked fury — and lawsuits — from some users by restricting trading of 50 highly volatile stocks that were heavily shorted. That list was whittled down to eight on Sunday, and by Thursday just GameStop and AMC remained. Earlier Thursday, GameStop had a 500-share purchase limit, while AMC had a 5,500-share limit.

The easing of restrictions comes as the massive wave that lifted GameStop, AMC and others appears to be crashing amid increasing regulatory scrutiny. After hitting an all-time high of $483 on Jan. 28, GameStop shares GME, -42.11% sank 42% on Thursday to close at $53.50, and are down 84% this week. AMC’s stock AMC, -20.96% is off 47% this week, closing Thursday down 21%, to $7.09.

US Treasury Secretary Janet Yellen met with top financial regulators Thursday and vowed to protect investors and maintain “fair and efficient markets.” However, financial market regulators needed to fully understand the recent trading frenzy before taking any action, she said.

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