Robinhood Says 9.5 Million People Traded Crypto on Its App in Q1
Will Gottsegen, 09 April 2021
The online brokerage service Robinhood said on Thursday that 9.5 million of its customers traded cryptocurrency on its platform in Q1 of 2021.
That’s up from just 1.7 million in Q4 of last year, a 458% spike.
In a blog post, the company chalked up the numbers to crypto’s growing “popularity”: the global market cap of all cryptocurrencies has doubled in the past three months to over $2 trillion. Continue reading “Article: Robinhood Says 9.5 Million People Traded Crypto on Its App in Q1”
Meme stocks loom large in the CSA’s short-selling review
James Langton, 22 March 2021
When a group of retail traders used Reddit to gleefully gang up on a handful of hedge funds in January, giving birth to the concept of “meme” stocks, they cranked up an already simmering debate about proper public discourse related to trading. In Canada, a consultation regarding activist short-sellers is the focus of that debate.
Late last year, the Canadian Securities Administrators (CSA) published a consultation paper on the role and regulation of activist short-sellers — traders who publicly air their negative views on the stocks they’re shorting.
Defenders of the practice maintain that vocal short-sellers are the only thing standing between unrelenting upside hype and ordinary investors — i.e., their skepticism and scrutiny help expose corporate fraud and misconduct, aiding naive regulators and investors alike. Continue reading “Article: Meme stocks loom large in the CSA’s short-selling review”
DTCC Proposes Shortening US Trading Settlement Cycle To T+1: Here’s Why That’s Important
Wayne Duggan, Benzinga, 24 February 2021
ROBERT STEELE: This article is such crap. As if DTCC had not willfully covered up $100 trillion in naked short counterfeit sales these past 15-20 years. Until DTCC is given a porcupine enema and we sent DOJ, FBI, and US Southern District Attorneys to jail for life for treason — enabling foreign collusion and domestic crime against the US economy — for life, this will not change.
Report: Feds Investigating Meme Stock Frenzy For Market Manipulation
Sarah Hansen, 11 February 2021
Federal authorities are investigating whether massive gains in “meme stocks” like GameStop in January were caused by market manipulation or other illegal behavior, the Wall Street Journal reported Thursday.
In January, individual traders from online communities like Reddit’s r/WallStreetBets forum and users of popular online brokerage apps like Robinhood were a driving force behind the meteoric rise of a handful of previously unpopular stocks. The traders pitted themselves against major hedge funds who had bet that the price of stocks in struggling companies like GameStop, AMC Entertainment, and Blackberry would fall in a practice called short selling. The rapid surge of interest from retail investors pushed the price of those stocks to record levels, and hedge funds like Melvin Capital faced massive losses as a result. At the peak of the frenzy, Robinhood restricted trading on shares of GameStop and a handful of other stocks, prompting a swift backlash from lawmakers and multiple class-action lawsuits from traders who said they had missed out on gains.
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Joseph Saveri Law Firm | 21.02.02
On January 28, many brokerages abruptly and unilaterally restricted retail investors’ ability to buy long positions—in some cases removing the option to buy shares of the relevant securities while openly permitting them to sell their existing shares or prohibiting users from viewing the tickers for some or all of the relevant securities.
Continue reading “Article: Short Squeeze Stockbrokers And Hedge Funds Face Proposed Antitrust Class Action”
The War On Wall Street: GameStop Sparks Revolution With Retail Investors
Anat Alon-Beck, 01 February 2021
I don’t know about you, but I’ve been glued to the financial news during the past week.
And, for the first time, both my husband and my son were actually interested in my work. It is mind-boggling.
My husband first told me these stories of people making exorbitant amounts of money trading stock options, and no, not people we know from the investment community. My son, who turned 11 this month, wanted to know what’s all the buzz in the news about his favorite store: GameStop GME +0.9%. Continue reading “Article: The War On Wall Street: GameStop Sparks Revolution With Retail Investors”
Why did Interactive Brokers restrict trading in GameStop and other companies?
George Sweeney, 29 January 2021
What is happening to GameStop shares?
GameStop shares have been hitting the news quite a lot recently. At first, it was simply due to their astronomical rise in value. Then people started looking into why the price was rising so much. After all, GameStop is a video game retailer that has been hit hard by the coronavirus pandemic and downloadable games.
Because of all the bad luck surrounding the company, they were one of the most shorted companies in the market. Short selling is when traders buy a company’s shares and then sell them, believing that their price will go down before they buy them back for a profit.
Why are there restrictions?
The reasons for the restrictions vary. Interactive Brokers have said their restrictions were created in order to protect the market and make sure there was enough liquidity.
Another concern they have is that they’ll be left to pick up the bill if their customers end up with big losses. That is why they’re increasing the minimum requirements people must meet in order to borrow money to trade.
If these shares all spiral down at the same time, their fear is that many traders won’t be able to pay back the money they’re borrowing for trading.
Other platforms have said they are using restrictions to:
Stop their service becoming overloaded. Provide some breathing room to maintain everything and look after other customers. Prevent investors losing lots of money during unusual volatility. Make sure they meet any regulatory requirements in their country.
However, some argue that limiting people’s ability to trade shares like GameStop freely is effectively market manipulation because: Many traders accept the volatility risk. Brokers are potentially limiting trading because of their own liquidity issues. Investors are not being allowed full control over their investments
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