Texas atty general probes Gamestock trade curbs from Robinhood, others (updated)

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29/01/2021 21:09

(Adds details, background and comments from Paxton)
    By Diane Bartz
    WASHINGTON, Jan 29 (Reuters) - Texas Attorney General Ken
Paxton issued 13 civil investigative demands on Friday to
Robinhood, Discord, Citadel and other trading apps that put
curbs on stock trading, his office said in a statement the day
after those curbs stalled a rally in shares of GameStop  GME.N .
    The CIDs, the civil equivalent of a subpoena, were sent
following a week-long slugfest in which retail investors bid up
shares of video game retailer GameStop and other out-of-favor
companies, resulting in huge losses to big hedge funds that had
shorted those stocks.  urn:newsml:reuters.com:*:nL4N2K432U
    On Thursday, GameStop shares fell after Robinhood and other
trading apps imposed the limits, a move that angered many
elected officials and prompted calls for action from regulators.
    "This apparent coordination between hedge funds, trading
platforms, and web servers to shut down threats to their market
dominance is shockingly unprecedented and wrong," Paxton said in
a statement.
    The CIDs were sent to Discord, Robinhood Financial,
Robinhood Markets, Robinhood Securities, Interactive Brokers, TD
Ameritrade, TD Bank, E-Trade, WeBull Financial, Public Holdings,
M1 Holdings, Citadel Financial, and Apex Clearing Corporation,
Paxton's office said in a statement.

 (Reporting by Diane Bartz, Editing by Franklin Paul and David
Gregorio)
 ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))