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Wednesday, December 7, 2022
HomeTipsUK Dealer Trading 212 Suspends Trading in Penny Shares

UK Dealer Trading 212 Suspends Trading in Penny Shares

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Trading 212 has suspended buying and selling in microcap penny shares, which attracted the eye of each regulators and novice traders over the previous two months amid social media curiosity.

The FCA-regulated dealer stated it briefly halts buying of penny shares which might be extremely illiquid and have a market cap within the tens of hundreds of thousands. “If we don’t do so, we risk being suspended by both the relevant exchanges and market makers,” Trading 212 said in statements published on its website.

These tiny-cap stocks, commonly referred to as penny stocks, have for decades been a tool for fraudulent schemes, including the pump-and-dump where manipulators hype a stock before exiting positions.

Volatile trading in so-called ‘meme stocks’ has been drawing scrutiny from policymakers in the US and elsewhere, which promoted many brokers to stick to the safe side and halt related products.

Keep Reading

The soaring retail investor interest driven by conversations on Reddit and Twitter was most notably seen in a surge and subsequent plunge in share prices of GameStop, AMC Entertainment, Blackberry, among others.

Trading 212 Stops Accepting New Clients

“The huge inflow of new retail investors is an unprecedented phenomenon for the financial markets. Brokers, market makers, regulators and even exchanges are still trying to navigate this new environment. We will continue pushing forward to provide as much trading freedom as is possible within the regulatory framework. A notice indicating that purchasing is suspended will be placed on each of the affected stocks,” Trading 212 additional explains.

The UK broker was among trading platforms that took matters into their own hands recently amid unprecedented Volatility in sure shares. The firm was getting more durable to limit the buying and selling of a number of extremely shorted shares following a buying and selling frenzy led by small traders. This was prolonged to scale back the Leverage ratio out there to silver merchants because the gray metallic grew to become the most recent flashpoint within the Reddit mania.

Furthermore, Trading 212 halted new account creation and stated onboarding extra purchasers could be enabled solely after processing the present purposes at the moment in line. The London-based fintech was considered one of a number of platforms, together with Robinhood and IG Group, that skilled outages because the variety of retail trades soared in lots of wild days for the markets.

Trading 212 has suspended buying and selling in microcap penny shares, which attracted the eye of each regulators and novice traders over the previous two months amid social media curiosity.

The FCA-regulated dealer stated it briefly halts buying of penny shares which might be extremely illiquid and have a market cap within the tens of hundreds of thousands. “If we don’t do so, we risk being suspended by both the relevant exchanges and market makers,” Trading 212 said in statements published on its website.

These tiny-cap stocks, commonly referred to as penny stocks, have for decades been a tool for fraudulent schemes, including the pump-and-dump where manipulators hype a stock before exiting positions.

Volatile trading in so-called ‘meme stocks’ has been drawing scrutiny from policymakers in the US and elsewhere, which promoted many brokers to stick to the safe side and halt related products.

Keep Reading

The soaring retail investor interest driven by conversations on Reddit and Twitter was most notably seen in a surge and subsequent plunge in share prices of GameStop, AMC Entertainment, Blackberry, among others.

Trading 212 Stops Accepting New Clients

“The huge inflow of new retail investors is an unprecedented phenomenon for the financial markets. Brokers, market makers, regulators and even exchanges are still trying to navigate this new environment. We will continue pushing forward to provide as much trading freedom as is possible within the regulatory framework. A notice indicating that purchasing is suspended will be placed on each of the affected stocks,” Trading 212 additional explains.

The UK broker was among trading platforms that took matters into their own hands recently amid unprecedented Volatility in sure shares. The firm was getting more durable to limit the buying and selling of a number of extremely shorted shares following a buying and selling frenzy led by small traders. This was prolonged to scale back the Leverage ratio out there to silver merchants because the gray metallic grew to become the most recent flashpoint within the Reddit mania.

Furthermore, Trading 212 halted new account creation and stated onboarding extra purchasers could be enabled solely after processing the present purposes at the moment in line. The London-based fintech was considered one of a number of platforms, together with Robinhood and IG Group, that skilled outages because the variety of retail trades soared in lots of wild days for the markets.

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