Former chairman of the Securities and Exchange Commission, Harvey Pitt, is responding to legislators urging the government to get involved in restrictions on stock trading.
The online trading platform IG Group Holdings Plc said on Saturday that it would limit any new positions on GameStop Corp and AMC Entertainment due to ‘extreme volatility’ in the market.
“Due to extreme volatility and prioritizing the service we provide to our existing customers, we do not allow any new positions on the US stocks GameStop and AMC Entertainment,” IG said in a tweet in London.
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“These restrictions will be reviewed regularly,” he added.
The company is the latest trading platform announcing restrictions following an increase in volumes in recent days due to calls on social media by individual investors to trade stocks such as GameStop and AMC, which have been severely curtailed by hedge funds.
The U.S. Securities and Exchange Commission on Friday became embroiled in a battle between small investors and Wall Street hedge funds, warning brokers and traders on social media that it was on the lookout for any violations in truck trading this week.