Temporary BUY Restrictions on Illiquid OTC Penny Stocks

[Rumen]

The limitations are temporary and aim solely to prevent the instrument from being suspended by our execution intermediary’s liquidity providers due to excessive order volume. As previously mentioned by David in this thread, it is not our intention to restrict the trading access to OTC stocks but rather the opposite - keep offering them on the platform. To do so, we are required to keep the trading volumes proportionate to the normal trading activity.

[jithboy]

funny thing is that your intermediary -if its IB, allowing all those OTC stocks

[Nicholasgolf]

And the whole point of the stock market is a limited amount of stocks that are bought and sold. Limiting the volume?? You are only limiting it in one direction.

Your explanations are somewhat hard to believe, unfortunately as there is enough evidence to the contrary.

If you needed to keep the volume proportional then you could restrict the amount, but just blocking buys and allowing sells makes no sense whatsoever.

Unless of course you are shorting the stock.

The problem as I see it is that your interaction with your clients is a bit sporadic and not transparent. Many people have multiple accounts, and hopefully most are able to read charts, so we know that there is buying of these stocks occurring. Why drive your customers into the arms of your competitors?

[Alien]

Blocking sell would be illegal, you can’t be prevented from selling what you own, and the broker can’t stop you from accessing your money.

[alizulfiqar]

No the funny thing is that they will not respond to your point because you have a point

[MaxZorin]

To do so, we are required to keep the trading volumes proportionate to the normal trading activity.

I don’t understand this. What if the company is suddenly bought out, or announces a revolutionary new product? There are many reasons volumes go up other than being a meme stock or whatever. Fundamentals change.

[Obama11]

To them a sudden increase in volume means it’s a meme/manipulated stock, even with a legitimate reasons why stocks go up, they don’t care and these stocks will be restricted for a while

[ajxvi]

Any update on this? It’s been a month.

[Bunghi]

Any news please? We are entering in 5th week of restriction

[Shiroh1ge]

EXPFF just got restricted as well, why? LLKKF is restricted for over a month now.

[Joey_Fantana]

@Joey_Fantana

@David

When there’s a sudden influx of orders for a certain microcap security, it triggers an investigation for market manipulation and could lead to a potential suspension of the stock

@David are you guys given any indication of when said investigation will be over?

And will the end of such mean the tickers are freed up to purchase again?

Thanks

@David @Tony.V - either of you able to advise on this please? Presume you’re advised when said investigation is over and what the findings were?

Many thanks

[Scott]

Is any investigation even occurring? or have they just taken preemptive precautions at this time in the market?

From my uneducated presumptuous point of view it just seems like a broker decision much like halting other trading has been lately,

[Alien]

From IBKR

Why do I get the message “Transactions in this instrument are limited to closing-only trades” when I try to buy certain stocks?

There are a number of circumstances that can change the status of a product that at one time was freely tradable to later being restricted to closing only. One of the most common causes is a change in a stock’s listing that causes it to no longer be continuously quoted on an electronic market. Another is a change to the clearing status whereby the stock can no longer be settled or cleared through standard clearing mechanisms, but rather requires special broker-to-broker bilateral settlement.

In these circumstances, IBKR will allow the client to close an existing position, but will not accept orders for that instrument which either serve to open a new position or increase the existing position. This limitation may be instrument-specific, and you may still be able to open or increase a position in another instrument.

[UberSteve]

And the same way I get notifications from T212 about GME going to the moon, T212 need to notify everyone about suspensions being lifted

[Obama11]

Does trading212 have any sort of evidence to show that all these pennystocks that have been restricted are being investigated or how they think the stocks are being manipulated? They need to answer all these questions

[Bunghi]

I dont think they are obligated to show us any proof :(… unfortunely… it would be nice if they would but im afraid they wont… its been 5 weeks now

[Sayeem]

Why bother having OTC markets if you are going to restrict everything? This is seriously pathetic a lot of my stocks are now restricted for no reason. There is no investigation - where is your proof? Why don’t you answer people’s questions? How can a stock be restricted for more than 6 weeks? Where is your update to remove these fake restrictions you put to manipulate the stocks?

[Scott]

It has been over 7 days since a 212 member of staff updated us in this thread. Could we at least get an idea what is happening behind the scenes?

The explanation that you are trying to keep trading volumes proportionate to normal trading activity is rather weak, and goes against the nature of trading in general and the overall market conditions. Even Tesla is swinging wildly so why shouldn’t OTC stocks. The liquidity and the lack there of it, is the buyer’s risk surely?

[Bunghi]

@David @Tony.V We need an update please… we are abandoned unknowngly of the situation…

[vivygal]

It’s honestly sad. I’ve given up on buying otc stocks on trading212 as they’ve now frozen two stocks I invested in. I’m also taking steps to move my portfolio out of 212 against my will.