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GameStop shares suspended from trading on eToro: Broker explains why

GameStop shares suspended from trading on eToro: Broker explains why

In a recent statement, online brokerage eToro responded to concerns over the temporary suspension of trading in GameStop Corp (GME) shares by clarifying the reasons for the suspension. The suspension, which affected many traders on the platform, was due to significant volatility in the stock's price, prompting the NASDAQ to apply a protective mechanism.

The full text of eToro's message reads, "We understand your concerns regarding the recent temporary suspension of trading in $GME (GameStop Corp.) shares and would like to provide some clarification. When stocks like $GME experience significant volatility, the exchange on which the stock is traded (in this case, NASDAQ) uses a protective mechanism to temporarily halt trading. Please note that these halts are part of the standard market dynamics and are not initiated by eToro. We will continue to reflect the prices received; however, you may experience trading interruptions due to an exchange-imposed suspension".

eToro emphasized that these mechanisms are designed to protect the market and its participants from volatile price movements that could lead to unmanageable risks. The company values the insight of its users in navigating these market dynamics, keeping clients informed, and minimizing disruptions to their trading activities.

Founded in 2007, eToro has more than 3 million user accounts. It has approximately $11.3 billion in client assets under management. The broker is CySEC and FCA-licensed.

Previously, the broker announced that it had received SOC 2 Type II certification, which certifies a high standard of data security and privacy in custody operations.

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