SEC's GameStop Report Investigates Role of 'Game-Like' Brokerage Apps

Asia's Tech News Daily

A report by the Securities and Exchange Commission (SEC) released Monday that investigated the trading controversy surrounding GameStop earlier this year has challenged the role of “game-like” trading apps that may urge investors to trade stocks too frequently.

GameStop experienced a surge of activity in January following social media chatter that led to the term “meme stocks.” Some brokerage apps temporarily banned some trades as a result of the volatile activity, with the SEC pursuing an investigation (pdf).

“January’s events gave us an opportunity to consider how we can further our efforts to make the equity markets as fair, orderly, and efficient as possible,” SEC Chair Gary Gensler said in a press release.

“Making markets work for everyday investors gets to the heart of the SEC’s mission. I would like to thank the staff for bringing their expertise to this important report, and for their ongoing work on to address the issues that January’s events raised,” he added.

The New York Stock Exchange halted trading of the stock of video game retailer GameStop on Feb. 25 as its price surged above $100 per share in overnight trading. The stock had been favored by small investors in online outlets like the Reddit forum r/Wallstreetbets.

The halts were triggered by the stock price increasing or decreasing too quickly, the exchange stated on its website, citing the Limit Up-Limit Down (LULD) rule. The rule was adopted by major exchanges in 2012 to trigger a 5- or 10-minute trading halt on an individual stock in some circumstances, such as when its price abruptly shifts up or down.

Two months after the controversial online trading spike, the video game retailer announced it would sell up to 3.5 million of its shares.

The shares were sold through an “at-the-market” offering, which let companies place their stock on the market over a period of time.

The new report emphasized that the role of online brokerage firms to encourage investors to trade more frequently needs further review.

“Consideration should be given to whether game-like features and celebratory animations that are likely intended to create positive feedback from trading lead investors to trade more than they would otherwise,” the SEC said in the report.

The controversial trades have had strong consequences across the industry. In addition to temporary trading by some online brokerage apps, companies have been fined for their involvement.

Massachusetts regulators fined MassMutual $4 million and ordered it to overhaul its social media policies after accusing the company of failing to supervise an employee whose online cheerleading of GameStop’s stock helped launch the frenzy that shook Wall Street earlier this year.

By Christopher Burroughs

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Implied Volatility Surging for Invitae (NVTA) Stock Options

Investors in Invitae Corporation NVTA need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 21, 2022 $40.00 Put ... Read more »

Here's Why Hold is an Apt Strategy for AXIS Capital (AXS)

AXIS Capital Holdings Limited AXS is poised for growth on solid Specialty Insurance, Reinsurance plus Accident and Health insurance portfolio, exit from underperforming lines, investment in more attractive markets, and ... Read more »

Pay Attention To Microcap Oil-Dri Corporation 

Supply Chain Costs Are Still Rising For Oil-Dri Corporation  Oil-Dri Corporation (NYSE: ODC) is not a big company but it is representative of an issue that has been and is ... Read more »

Kinsale (KNSL) Gains 33% in 6 Months: More Room for Upside?

Shares of Kinsale Capital Group KNSL have rallied 32.6% in the last six months against the industry’s decrease of 8.6% and the Finance sector’s decrease of 0.7%. The S&P 500 ... Read more »

Stock Market News for Dec 8, 2021

U.S. stocks closed higher for the second consecutive session on Tuesday as investors shrugged off fears of the Omicron variant of the coronavirus after reports suggested that the mutant is ... Read more »

How to Introduce Customer Financing in Your Business

If you’re going to sell expensive items to customers, you should be prepared to offer your customers some form of financing. Once offered, your customers can take advantage of loans ... Read more »

Company News for Dec 8, 2021

Shares of American Airlines Group Inc. AAL declined 0.2% after the company said that its Chief Executive Officer Doug Parker will retire on Mar 31, 2022 after being in the ... Read more »

Lockheed's (LMT) Arm Wins Deal to Support CH-53K Aircraft

Lockheed Martin Corp.’s LMT business unit, Sikorsky, recently won a contract for procuring long-lead items involving full-rate production of CH-53K aircraft. The Naval Air Systems Command, Patuxent River, MD, offered ... Read more »

Are Options Traders Betting on a Big Move in Sesen Bio (SESN) Stock?

Investors in Sesen Bio, Inc. SESN need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 18, 2022 $2.00 ... Read more »

GATX Selects Lyons as New CEO, Incumbent to Retire in '22

GATX Corporation’s GATX president and CEO, Brian A. Kenney, is set to retire on Apr 22, 2022. He will continue to serve on GATX’s board of directors as non-executive chairman ... Read more »

Growing Pains Cut Into Casey's General Stores, Inc Profits

Inflation Takes A Bite Out Of Casey’s General Stores  Casey’s General Stores, Inc (NASDAQ: CASY) is a solid post-pandemic play and steady growth story and nothing has changed about that. ... Read more »

Bill Gates Gets Emotional About Divorce, Empty Nesting: 'It's Been a Year of Great Personal Sadness For Me'

Never one to publicly overshare about his personal life, Bill Gates took to his blog on Tuesday to share some insight on his emotions following a very heartbreaking divorce as ... Read more »

Former Theranos CEO Elizabeth Holmes Admits to Inaccuracies in Her First Major Cover Story

On Tuesday, U.S. attorney Robert Leach continued his cross-examination of former Theranos CEO Elizabeth Holmes in her fraud trial after a one-week recess. At one point during the testimony, Leach questioned ... Read more »

Google's Year in Search 2021 Was Led by Sports and 'Squid Games,' But Other Trending Topics Might Surprise You

Google just released its Year in Search for 2021, and it includes some predictable topics in the top slots. Sports took up the top five overall with searches like “Australia vs ... Read more »

To Become a Top Executive, Take Control of Your Personal Brand Today

In today’s search-engine era, numerous search platforms make it easier than ever to find out all you could ever need to know about products, businesses or even personal information about senior-level ... Read more »

From CTV to Programmatic Product Placements: Marketing Trends to Embrace in 2022

The digital marketing landscape has been increasingly dynamic, to put it mildly. Pandemic-related restrictions and data security/privacy regulations made hundreds of companies the reexamine old strategies and platforms for ad ... Read more »

Why You Should Look Into Luxury Niches and Micro-Influencer Marketing

Targeting a niche of clients is the first step in building a strong digital brand for your design business. Unique luxury niches such as yachting and private aviation interior design can level ... Read more »

A song called 'Startup' that your marketing strategy can compose in 2022

By Daniel Munar, Office Manager Colombia & México at Wayra Hispam When we talk about undertaking and entering the world of innovation , we can say that it is the ... Read more »

Vaccination dates for the laggards in CDMX

Since they have finished vaccinating 15-17 year olds with conditions that make them high risk, they will begin to vaccinate those who did not receive the immunization with their age ... Read more »

Drivers Can Play Video Games While Driving Tesla Cars

Social media videos posted by drivers and car reviewers show how video games on Tesla Inc (NASDAQ:TSLA) vehicles can be accessed while in motion. The revelation comes after the company’s ... Read more »

If This Guy Could Make a Portrait Out of Toast, I Can Do Anything

I graduated from college in the early ’90s with a major in Italian literature and no clue how I was going to make a living. I struggled to find my ... Read more »

Designers Will Love This Digital Pen

In the digital age, designers know they need to be ready to work as soon as inspiration strikes. Especially design entrepreneurs who rely on their creativity for a living. In ... Read more »

India stands united in grief: Tributes pour in as General Bipin Rawat, 12 others die in chopper crash

The Indian Air Force on December 8 confirmed the demise of Chief of Defence Staff (CDS) General Bipin Rawat, his wife and 11 others who were on board a chopper ... Read more »

Stop Asking Job Candidates to Prove Why They're Right for the Job

Today, employers face hiring challenges at every level. The U.S. government reported a recorded high of 10.9 million job openings in July, and the National Federation of Independent Business said ... Read more »

José Ochoa sold fruits house to house in Chihuahua as a child. Today he is the owner is the most successful logistics company in El Paso, Texas

When your doorbell rings to sell something, think twice before bothering yourself. That child could be the next Mexican to be celebrated in the world’s largest economy for his ability ... Read more »

Covid-related queries make up for most of Google India's list of top 'How to' searches

Google Year in Search 2021: “How to buy Dogecoin in India” ranked number 6 in “How to” category. Google India on Wednesday announced the results for its Year in Search ... Read more »

Delhivery Acquires Transition Robotics

Delhivery, a logistics services player, has acquired Transition Robotics, a California-based company focused on developing Unmanned Aerial System (UAS) platforms. TRI brings a decade of deep experience with all aspects ... Read more »

Should Invesco S&P SmallCap 600 Revenue ETF (RWJ) Be on Your Investing Radar?

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Invesco S&P SmallCap 600 Revenue ETF (RWJ) is a passively managed exchange traded ... Read more »

Is Principal U.S. MegaCap ETF (USMC) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box – Large Cap Blend category of the market, the Principal U.S. MegaCap ETF (USMC) is a smart beta exchange traded fund ... Read more »

Should You Invest in the First Trust Natural Gas ETF (FCG)?

Designed to provide broad exposure to the Energy – Natural Gas segment of the equity market, the First Trust Natural Gas ETF (FCG) is a passively managed exchange traded fund ... Read more »

Fego.ai Raises $1.5 Million In Seed Round

 Fego.ai has raised  $1.5 million in Seed round from 3one4 Capital, Saison Capital, Eximius Ventures, First Cheque and Speciale Invest.  The startup, which is one of the earliest open-finance players ... Read more »

Is Fastly a Good Content Delivery Network and Security Software Stock to Own?

Content delivery network and software company Fastly (FSLY) reported revenue growth of nearly 23% in its last reported quarter. However, its stock is currently trading near its 52-week low of ... Read more »

Should SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) Be on Your Investing Radar?

Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) is a passively managed exchange ... Read more »

Should Direxion NASDAQ100 Equal Weighted Index Shares (QQQE) Be on Your Investing Radar?

If you’re interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Direxion NASDAQ100 Equal Weighted Index Shares (QQQE), a ... Read more »

Compass Diversified In Buy Range After Clearing Handle Buy Point

Compass Diversified (NYSE: CODI) is a modern spin on the old-fashioned holding company. On Tuesday, it cleared a cup-with-handle base above a buy point of $32. Trading volume was more ... Read more »

Should You Invest in the Fidelity MSCI Energy Index ETF (FENY)?

Designed to provide broad exposure to the Energy – Broad segment of the equity market, the Fidelity MSCI Energy Index ETF (FENY) is a passively managed exchange traded fund launched ... Read more »

Is Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box – Large Cap Blend category of the market, the Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW) is a ... Read more »

Alibaba Advances 1.57% On News Of Business Unit Reorganizations

Shares of China-based online marketplace Alibaba Group (NYSE: BABA) are up more than 11% so far this week, marking the stock’s best performance since early October.  Shares are down 45.97% ... Read more »

Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box – Large Cap Growth category of the market, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange ... Read more »

Should Invesco Russell 1000 Equal Weight ETF (EQAL) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco Russell 1000 Equal Weight ETF (EQAL) is a passively managed exchange traded ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic