Treasury Secretary Janet Yellen has convened a meeting with top financial regulators to discuss the recent volatility of GameStop-related financial markets Corp.
, a Treasury spokeswoman confirmed Tuesday night.
Ms. Yellen, who chairs a board of regulators that monitors financial stability risks, has called for a meeting with officials from the Securities and Exchange Commission, the Federal Reserve, the New York Fed and the Futures Trading Commission. Goods, said Treasury spokeswoman Alexandra LaManna. .
“Secretary Yellen believes that the integrity of markets is important and has called for a debate on the recent volatility of financial markets and whether recent activities are compatible with investor protection and fair and efficient markets,” Ms. LaManna.
Reuters previously reported on the meeting, which is expected to take place as early as Thursday.
A group of traders of the day gathered in recent weeks to buy GameStop shares, raising the price more than tenfold and provoking complaints about the frantic manipulative activity.
The SEC said Friday that it planned to closely review the shares of some brokerage firms that restricted investors’ ability to trade volatile stocks like GameStop, the clearest indication that regulators were examining possible misconduct around the stock market. commercial mania that flooded stocks like GameStop, AMC Entertainment Fund Inc.
and Novavax Inc.
Robinhood Markets Inc. restricted the ability of investors to buy shares of GameStop and 12 other companies last week as it dealt with the impact on its financial requirements of an increase in trading.
Analysts hope the trading mania could lead to tougher SEC rules on brokerage firms to ensure they have enough capital during periods of market volatility. Some Capitol Hill lawmakers have also proposed legislative changes, such as restrictions on short-term sales and financial transaction taxes, that could fix the situation.
Asked about trade volatility on Monday, 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 in as a result of market volatility in recent days, and we believe that Congress’s attention to these issues is adequate. ”
GameStop saw its highest percentage of a day ever fall on Tuesday, falling by $ 135, or 60%, to $ 90. That ended last week’s earnings, though the video game company’s shares are still up 378% year-over-year.
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