Robinhood reduces restricted list to 8 stocks, users can only buy a share of GameStop

Online brokerage GameStop on its website on Sunday updated its list of restricted stocks, cutting the number down to 8 from 50. The updated restricted list includes stocks of GameStop (GME), AMC Entertainment (AMC), Blackberry Ltd. (BB), Express Inc. (EXPR), Genius Brands International Inc. (GNUS), Koss Corp (KOSS), Naked Brand Group (NAKD), and Nokia Corp. (NOK).

Source: Robinhood

“Please note that these are aggregate limits for each security and not per-order limits, and include shares and options contracts that you already hold,” Robinhood wrote on its website. “These limits may be the subject to change throughout the day.”

Based on the information provided above, Robinhood users can only buy one share of GameStop, but up to 5 contracts. Users are also only allowed to buy up to 10 AMC shares and 10 options contracts.

Users whose holdings currently exceed the numbers will not lose their positions, according to Robinhood. However, they will not be allowed to open more positions of each of the listed securities unless they sell much of their holdings to fall below the respective limit.

Last week, some furious users launched lawsuits against Robinhood, after the online brokerage restricted trading in several highly volatile stocks that were heavily shorted.

The move to further cut down the Robinhood restricted list came after the online brokerage announced that the central Wall Street clearinghouse demanded a 10-fold increase in its deposit requirements to ensure that its settlements were orderly. Clearinghouses have to ensure that investors and the markets are protected, by making sure that brokerages have the financial capacity needed for trade settlement.

GameStop stock rose more than 400% last week, and are currently more than 1500% for the year. The recent increase in GameStop stock price was sparked by an effort of online traders in the Reddit WallStreetBets community to upend short sellers. AMC shares also rose 280% last week, and are 525% for the year.