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

Published 01/29/2021, 09:42 AM
Updated 01/29/2021, 10:15 AM
© 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.

© Reuters. FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door

"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.

Latest comments

why this investigating agencies were so worried about market manipulation are they really there to protect retail investors or to safeguard big hedge funds
Hey you cant rig the stock market against fhe people who have been rigging it fpr decades... power to the people
it's called naked puts. Used and traded all the time. More socialist regulations these illegal administration implements, more the markets will tank.
Just let the market be themarket , it will take care of itself !
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!
Yeah the same share shouldnt be allowed to be shorted twice but it is
don't touch anything
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.
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.
yes the rich people are the ones that do it and us small people and take are hard earned money
yes the rich people are the ones that do it and ****** us small people and take are hard earned money
Do more to prevent giants like JP Morgan and other financial institutions from price manipulation. They are the crooks here and you all do little to nothing about it. Brokers halting and limiting trading are also crooks for doing so just because their higher up friends are losing money. They knew the risks as did anyone else that joins the market. Or is it only a free marker so long as retail loses?
Limiting trading when their institutional friends are losing. Or is it only a free market when retail is losing?
Investigate The Fed and Banks for pumping the Stock Market and Manipulating Interest Rates to create the biggest bubble in history no I guess is different.
If hedge funds tried to corner the market to delibetately trigger a short squeeze SEC would be on it in a flash. I suppose law doesn't apply to everyone.
Lol your not going to do ****** Be shoved under the rug
FINALLY!
salty boomer spotted.
Are they doing anything not meeting current rule or law?
Cornering the market is a criminal offense.
if done with privileged information. Anyone can go to reddit and read the boards.
the free market, unfettered, isnt all good. market manipulation and mania is bad. it distorts risk and return and people will get hurt. gamestop is worth $0 to maybe 40 or 50 bucks only everything goes right. anyone who thinks they have a logical analytical valuation above that is deluded.
140% short position is market manipulation and mania.  140% short position distorts risk and return.
yeah, it's only good when certain megacorp or governments meddle in it
it isnt good for corps either but I dont care if they lose their money. the greater fool theory isnt an investment strategy
peasants must stay peasants. no money for you simple people. you are not worth it. only big people can trade and manipulate markets
russian bot repurposed now that Trump is a has been? market manipulation hurts everyone that isnt the one doing the manipulating....just because it is done by lots of individuals and not a hedge fun doesnt make it suddenly ok.
peasants dont have the money to invest and betting on the greater fool is not an investment strategy
Elon account should be suspended too. Influencing and cheating too.
You shorted it i suppose why would you be against this
glad you feel free enough to talk about things you have no knowledge of...or are you a Russian bot that is bored now that Trump is gone
Super dangerous for anyone even close to retirement age!
bubbles generally are
Anyone close to retirement age should be 90% out of stocks by now. Problem is - where does one go for > 0.1% return?
De Giro was blocking GME today.
that's not true
Disgusting.
Okay, so that's the new cold war?
Amc still able to trade on TD.
Gme is a failed retail business model, it needs a remake, not retail investors who don't sit on the board, and only buy to sell when they have spiked the price.
It’s funny though. Keeping the price up long enough will let GME raise cash by selling stock and transform it business model. The retailer investors can create a self-fulfilling prophecy if their determination holds long enough. Is it a GOOD use of capital, who knows?
and Tesla? peloton? SMH
It's funny Robinhood is getting all the flack here. Schwab, E-trade, and IBKR all stopped buying the same securities.
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