Robinhood troubles: SEC will ‘closely review’ actions that restricted AMC, GameStop stock trades – CNET

Robinhood was a popular stock market app. Now it’s being called the Sheriff of Nottingham.

Over the past week, the popular stock trading app Robinhood has drawn the ire of the internet as it restricted trades of GameStop, AMC and other wildly swinging stocks. The move interrupted, for a short time, a showdown between Reddit users and large investors that’s become one of the biggest dramas in Wall Street history. Now, the Securities and Exchange Commission says it will “closely review” what happened.

In a statement Friday, the acting chair of the SEC and three commissioners said that it is “closely monitoring and evaluating the extreme price volatility of certain stocks’ trading prices over the past several days.” 

Editors’ top picks
Subscribe to CNET Now for the day’s most interesting reviews, news stories and videos.

The statement didn’t mention Robinhood by name, but the commission said it would “closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.” 

Robinhood didn’t immediately respond to a request for comment.

“Our core market infrastructure has proven resilient under the weight of this week’s extraordinary trading volumes,” the commission added in its statement. “Nevertheless, extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence.”

This content was originally published here.