The London-based broker IG Group has suspended the creation of new accounts, announced the broker. The reason behind that decision is the number of technical issues they have due to the recent Reddit-inspired Gamestop situation.
The CEO of the company, June Felix, wrote an open letter to their clients: “ We are in the midst of an unfolding situation in global markets which is attracting a significant number of new traders to trading platforms to buy particular stocks in a coordinated way…This has caused a significant increase in trading volumes and demands on our platform .”
The CEO also assured their clients that future issues will be dealt in a more subtle way.
I wonder if any other brokers will do that. And what the long-term consequences of the Gamestop shortsqueeze will be for the market. Will we see any new regulation?