GameStop ban wasn't intended to help hedge funds - Robinhood CEO

Thursday, 18. February 2021 18:24

Robinhood Markets Inc. CEO Vlad Tenev asserted on Thursday that the company's restriction of the share trading of GameStop Corp. in January was not implemented to aid the hedge funds which were shorting the video game company.

Tenev stated that limitations were applied due to increased collateral requirements by clearinghouses. As soon as the new obligations were met, Robinhood allowed trading of the shares, he said.

The executive claimed that "what happened is unacceptable," adding that the trading company is doing "everything it can" so that the issue never repeats itself.

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Breaking the News / MD