Name: Robinhood says restrictions on GameStop due to tenfold increase in clearinghouse deposit requirements
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Robinhood says restrictions on GameStop due to tenfold increase in clearinghouse deposit requirements

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Key PointsOnline broker Robinhood said that it put temporary buying restrictions on a small number of securities because central Wall Street clearinghouse-mandated deposit requirements for equities increased tenfold.The decision by Robinhood, a free-trading pioneer and app that's popular among small investors, drew scrutiny from its customers over the past week."It was not because we wanted to stop people from buying these stocks," Robinhood "We did this because the required amount we had to deposit with the clearinghouse was so large — with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements — that we had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements," it continued.Amateur investors using Robinhood and other apps and caused &nbsp;shares to skyrocket 400% in the past week, resulting in major losses for hedge funds who shorted the shares.Robinhood initially told investors they coul that were attracting attention from retail traders on Reddit. The online brokerage is now allowing clients to buy only a single share of GameStop. A total of . Robinhood limits trades on 50+ stocks, including Beyond Meat, Starbucks

Key PointsOnline broker Robinhood said that it put temporary buying restrictions on a small number of securities because central Wall Street clearinghouse-mandated deposit requirements for equities increased tenfold.The decision by Robinhood, a free-trading pioneer and app that's popular among small investors, drew scrutiny from its customers over the past week."It was not because we wanted to stop people from buying these stocks," Robinhood "We did this because the required amount we had to deposit with the clearinghouse was so large — with individual volatile securities accounting for...

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Emma Newburger

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Robinhood says restrictions on GameStop due to tenfold increase in clearinghouse deposit requirements

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