(Reuters) – Sq. Inc-owned Money App stated on Tuesday its clearing dealer lifted restrictions on shopping for shares of AMC Leisure and Nokia Oyj’s by means of the cellular cost platform, simply hours after inserting the short-term curbs. (bit.ly/2NVOHLT)
Money App’s halt got here on the heels of on-line brokerage Robinhood inserting related constraints on shares of some firms, as clearinghouse deposit necessities tied to buying and selling volumes jumped and strained its funds. Robinhood on Monday tapped nearly $3.4 billion in emergency funding from current traders to handle the issue.
Money App stated on Tuesday central clearinghouse DTC elevated capital necessities on Axos, the clearing dealer utilized by the app, by greater than 250%. (bit.ly/3cD9RJ1)
The app permits customers to purchase and promote each shares and Bitcoin, whereas additionally offering cash switch providers.
Clearing brokers are required to offer funds within the type of deposits to help buying and selling, however Axos has not supplied the required further capital, proscribing shopping for of shares of AMC and Nokia, the corporate stated.
Reporting by Noor Zainab Hussain in Bengaluru; Modifying by Shinjini Ganguli and Ramakrishnan M.