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U.S. SEC will review actions inhibiting trading of some securities

Stock Markets Jan 29, 2021 10:15AM ET
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© Reuters. FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door

WASHINGTON (Reuters) - The U.S. securities regulator on Friday said it would review actions that may "unduly inhibit" trading of certain securities and said it was closely monitoring potential wrongdoing amid recent price volatility in the U.S. stock market.

Securities and Exchange Commission (SEC) officials warned against illegal "manipulative trading activity" and said they were working closely with other regulators to monitor the situation after a wild week of trading during which an army of small investors have driven a dramatic squeeze of Wall Street hedge funds in shares of GameStop Corp (NYSE:GME) and other hot companies.

"The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities," the SEC said on Friday, following a statement earlier in the week it was monitoring market volatility.

Online broker Robinhood earlier in the week placed disputed trading restrictions on certain shares, drawing ire from lawmakers and scrutiny from regulators. The firm had eased restrictions on Friday.

"Our core market infrastructure has proven resilient under the weight of this week’s extraordinary trading volumes. Nevertheless, extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence," the SEC said on Friday.

U.S. SEC will review actions inhibiting trading of some securities
 

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Comments (26)
Ayyappa Rama Reddy
Ayyappa Rama Reddy Jan 29, 2021 7:24PM ET
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why this investigating agencies were so worried about market manipulation are they really there to protect retail investors or to safeguard big hedge funds
James Pattison
James Pattison Jan 29, 2021 5:51PM ET
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Hey you cant rig the stock market against fhe people who have been rigging it fpr decades... power to the people
Olgrim Gri
Olgrim Jan 29, 2021 5:49PM ET
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it's called naked puts. Used and traded all the time. More socialist regulations these illegal administration implements, more the markets will tank.
David Ptacek
David Ptacek Jan 29, 2021 5:44PM ET
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Just let the market be themarket , it will take care of itself !
Marci Bailey
Marci Bailey Jan 29, 2021 4:44PM ET
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The hedge funds should not be allowed to short 150% of a stock! How is that fair or even legal? Even the CNBC guys didnt know that!
Weston Probst
Weston Probst Jan 29, 2021 4:44PM ET
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Yeah the same share shouldnt be allowed to be shorted twice but it is
David Trépanier
David Trépanier Jan 29, 2021 4:34PM ET
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don't touch anything
Casino Crypt
CasinoCrypt Jan 29, 2021 4:29PM ET
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You couldn't engineer a casino circus like this even if you tried. Nothing except tweets , blogs and hope is pushing this all up. Hope as we know is the ultimate ki11_er of all.  The regulators are so far behind and they never even saw Trump tweeting with winks to the markets.
First Last
HonestComment Jan 29, 2021 4:27PM ET
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Instead of looking in the right direction (i.e. ludicrous amount of speculative shorts on a company suffering from the covid and *****its potential recovery) they look at the easy preys that they don't need to look in the eyes. Again serving the wrong people and they will be the first surprised of how people believe in conspiracy theories.
Nathan Smith
Nathan Smith Jan 29, 2021 4:26PM ET
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yes the rich people are the ones that do it and us small people and take are hard earned money
Nathan Smith
Nathan Smith Jan 29, 2021 4:26PM ET
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yes the rich people are the ones that do it and ****** us small people and take are hard earned money
 
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