- Update at 3:18 PM ET: Square's (NYSE:SQ) Cash App says its clearing broker has resumed that ability to buy AMC and NOK through the app.
- Original post: Cash App's clearing broker has temporarily halted its ability to buy AMC Entertainment (AMC -38.8%) and Nokia (NOK -7.5%) shares, the company said on its blog.
- "This was not Cash App's decision," the firm said.
- Cash App works with a carrying broker dealer, DriveWealth, and a clearing broker trader, Axos (AX +3.2%), to process trades on customers' behalf.
- On Monday, the central clearing house DTC significantly boosted the capital requirements on Axos. At that time Axos hadn't provided the necessary additional capital and has restricted purchased of AMC and Nokia.
- The halt doesn't apply to sell trades, only to buy trades, Cash App points out.
- And traders seem to be in a selling mood on those shares today.