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Schwab, the parent of TD Ameritrade, experienced “heightened trading volume and volatility” this week following an unexpected surge in share prices for stocks that were expected to fall, including GameStop, AMC Entertainment, Bed Bath & Beyond, BlackBerry and others.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||13.26||+4.63||+53.65%|
|BBBY||BED BATH & BEYOND INC.||35.33||+1.69||+5.02%|
“This week has included some of the highest-volume days in market history, driven in part by market volatility, short-selling activity, and heightened trading activity,” Jonathan Craig, senior executive vice president of investor services, said in an emailed statement.
He continued: “We know, over the long term, what’s most important is to rely on traditional disciplines around asset allocation and diversification, tune out the noise to the extent possible, and stick to your long-term goals.”
Craig added that a surge in trading activity across the industry has “led to significant call volumes and hold times, as well as challenges with online functionality at market open for some clients.”
A message on the Charles Schwab mobile app on Friday notified users of “technical issues” causing “some transfers and payments that were scheduled to post to accounts” on Friday to be “delayed.”
The company said it restricted transactions of certain securities “in the interest of helping to reduce risk due to recent market volatility.” TD Ameritrade, Robinhood and other mobile brokerage apps did the same this week as retail investors, spurred by the online Reddit forum WallStreetBets, piled into stocks like GameStop, Bed Bath & Beyond, BlackBerry and Nokia.
The Charles Schwab, TD Ameritrade and Robinhood apps also experienced outages Wednesday as early-morning market chaos ensued.