Update as of 2/2/2021 11:29 AM PST
Our clearing broker, Axos, has resumed the ability to buy AMC and Nokia through Cash App for the rest of the trading day. At this time, we don't have information as to the reasons for Axos' decision or whether they met the increased deposit requirements. We will provide an update if the situation changes.
Thank you for your patience and understanding.
Original Post - Market Open 2/2/2021
The clearing broker who processes our trades, Axos, has temporarily halted Cash App’s ability to complete purchases of AMC Entertainment ($AMC) and Nokia ($NOK). This was not Cash App’s decision. This halt only applies to buy trades of these stocks; sell trades remain available.
Cash App currently works with a carrying broker dealer, DriveWealth, and a clearing broker dealer, Axos, to process trades on our customers’ behalf and we are entirely subject to our brokers’ ability to support our trades.
Clearing brokers must provide capital deposits to support trading. Yesterday, the central clearinghouse (DTC), significantly increased the capital requirements on Axos. As of this time, Axos has not provided the necessary additional capital and has restricted purchases of AMC and Nokia.
To provide our customers with full transparency, we’ve posted the exact email we received from DriveWealth regarding the buy trade halt. Cash App has not yet been provided with a clear path to fix this situation ourselves. We are monitoring the situation closely and are working to make these stocks available for purchase again as soon as possible.
Investing involves risk; you may lose money. Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC and a subsidiary of Square, Inc. Past performance of a security or financial product does not guarantee future results or returns. You should consider the risks before investing. For more on the risks of investing see our Disclosure Library
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