Robin Hood CEO: Chain Reaction Out of Control
The aftermath of the “GameStop Incident” has not ceased. Vlad Tenev, CEO of Robinhood, an online trading platform, was recently summoned by the U.S. House of Representatives Finance Committee and apologized when the stock soared. Restrict transactions. Tenev expressed his opinion on Tuesday, saying that the same one has been short-sold many times, which is bringing chaos to the market and investors.
“Bloomberg” reported that Tenev stated in a virtual meeting held by the “New York Times” that when the same stock is borrowed again and again, there will be some kind of chain reaction out of control. “We should short orders. How many times are the stocks paid? I think the answer should be only once.”
Tenev still mentioned that if there were some trading restrictions at the time, the situation might be different, which is worth studying. Jay Clayton, the former chairman of the US Securities Traders Association (SEC), also participated in this meeting. He believed that short trades should be disclosed in real time.
GameStop‘s stock price has fallen 87% from its peak on January 27, and fell another 2.24% to $44.97 on Tuesday.