SEC Looking Into Recent Market Volatility, Trade Halts Related to GameStop and Other Stocks

The U.S. Securities & Exchange Commission (SEC) issued a statement Friday to inform the public that it is “closely monitoring” recent market volatility and the halting of trades of certain stocks by trading platforms. On Thursday, several trading platforms, including Robinhood, Webull, Public.com, and many others halted trades on individual stocks, including GameStop, Nokia, Blackberry, and others. 

In a statement signed by Acting Chair Allison Herren Lee, Commissioner Hester M. Peirce, Commissioner Elad L. Roisman, and Commissioner Caroline A. Crenshaw, the SEC said that it is reviewing recent activities of “regulated entities” that played a part in halting trades. From the statement:

“As always, the Commission will work to protect investors, to maintain fair, orderly, and efficient markets, and to facilitate capital formation. The Commission is working closely with our regulatory partners, both across the government and at FINRA and other self-regulatory organizations, including the stock exchanges, to ensure that regulated entities uphold their obligations to protect investors and to identify and pursue potential wrongdoing. 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 statement goes on to note that the SEC will act to protect retail investors “when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws,” adding that it urges “market participants [to] be careful to avoid such activity.” 

For a better understanding about what is happening with GameStop’s and other stocks, check out TEO Business Analyst Tobias Seck’s deep dive into the situation, “GameStop – How a Company Looking to Focus on Esports Became 2021’s Biggest Financial Market Upset.”

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