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SEC to weigh more transparency to short sale after GameStop frenzy - WSJ

Published 02/17/2021, 04:22 PM
Updated 02/17/2021, 04:25 PM
© Reuters. FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door

(Reuters) - The U.S. Securities and Exchange Commission is considering whether to require more transparency of short-selling, the Wall Street Journal reported on Wednesday, after last month's social media-driven rally in a handful of stocks like GameStop Corp (NYSE:GME).

The regulator will also examine the network of stock lending and borrowing that facilitates short-selling, the report said, citing people familiar with the matter. (https://

GameStop did not immediately respond to Reuters request for comment. A spokesperson for the SEC declined to comment.

GameStop shares had rallied last month as investors following the Reddit forum WallStreetBets bought them hoping to punish hedge funds such as Melvin Capital Management that had taken short positions.

Latest comments

A fair market should not be subject to manipulation by participants who have an advantage in information and confidentiality regarding disclosure. Why are hedge funds given the unfair advantage of not disclosing their holdings, considering the buying and market power they have to manipulate markets and plunging whole economies into crises? A fair market assumes the equal rights and opportunities of all participants. However, at the moment this market is skewed to one side that has the means and will to circumvent and manipulate regulation at will. How could that go on for such a long time?
I think you better check blind buy-sell transactions between hedgies. Their computers can play with Wall Street, SEC and anyone else, lowering stock prices whenever they want. Completely unfair game. Actually, disaster for any stock exchange system.
End is near Melvin..soon homeless
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