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Reddit Stock Mayhem ‘Generated Substantial Risk’ for Brokers

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Reddit's Co-founder on the Rise of the Retail Investor

Extreme volatility in stocks such as GameStop Corp. and AMC Entertainment Holdings Inc. “generated substantial risk” for brokerages, imposing stricter requirements on the firms, according to Wall Street clearinghouse DTCC.

“When volatility increases, portfolio margin requirements increase too,” the Depositary Trust & Clearing Corp. said Thursday in an emailed statement.