Treasury Secretary Janet Yellen convened a meeting with top financial regulators to discuss recent volatility in GameStop-related financial markets Body.
, a Treasury spokeswoman confirmed on Tuesday evening.
Ms Yellen, who chairs a board of regulators that monitors financial stability risks, has requested a meeting with officials from the Securities and Exchange Commission, Federal Reserve, New York Fed and Commodity Futures Trading Commission, a Treasury spokesman said. , Alexandra LaManna. .
“Secretary Yellen believes that market integrity is important and called for a discussion on recent volatility in financial markets and whether recent activities are in line with investor protection and fair and efficient markets,” LaManna said.
The meeting, which is expected to take place on Thursday, was previously reported by Reuters.
A group of day traders have gathered together in recent weeks to buy GameStop shares, raising the price more than 10 times and causing complaints that the frantic activity has been manipulative.
The SEC said Friday that it intends to closely review the actions of brokerage firms that restrict investors’ ability to trade volatile stocks, such as GameStop, the clearest indication that regulators are examining potential deviations around the trading rage that has flooded stocks such as GameStop, AMC Entertainment Holdings Inc.
and Novavax Inc.
Robinhood Markets Inc. restricted investors’ ability to buy shares in GameStop and 12 other companies last week as it dealt with the impact on financial requirements of an increase in transactions.
Analysts expect that trading mania could lead to tougher SEC rules on brokerage firms to ensure they have enough capital in times of market volatility. Some Capitol Hill lawmakers have also proposed legislative changes, such as restrictions on short selling and financial transaction taxes, that could address the situation.
Asked on Monday about trading volatility, White House press secretary Jen Psaki said the SEC is reviewing and monitoring the situation, adding: “There is a significant set of policy issues that have been raised as a result of market volatility in recent days and we believe that congressional attention to these issues is adequate. ”
GameStop saw its biggest one-day percentage drop on Tuesday, dropping $ 135, or 60 percent, to $ 90. This eliminated last week’s earnings, although the video game company’s shares are still up 378% for that year.
Write to Kate Davidson at [email protected]
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