WASHINGTON (Reuters) – The U.S. securities regulator said Friday it would review actions that could be “unduly obstructing the trading of certain securities and said it was closely monitoring me. -possible equity 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 when which an army of small investors has led to a massive push of Wall Street. hedge funds in shares of GameStop Corp. and other hot companies.
“The Commission will closely review actions taken by regulated bodies that may disadvantage investors or severely impede their ability to trade certain securities,” the SEC said on Friday. following an earlier in the week report that they were monitoring market volatility.
Online broker Robinhood earlier in the week imposed controversial trading restrictions on some shares, drawing attention from lawyers and scrutiny from regulators. The company had relaxed restrictions on Friday.
“Our market infrastructure has been resilient under the pressure of this week’s staggering trade volumes. Nonetheless, high volatility in stock prices has the potential to lead investors to rapid and severe losses and weaken market confidence, ”the SEC said on Friday.
Reporting with Susan Heavey and Chris Prentice in Washington; Edited by Chizu Nomiyama and Nick Zieminski