Fearing that recent delistings and volatility "undermine market
confidence," the U.S. securities regulator says it is looking into the
Robinhood fiasco.
The U.S. securities watchdog is looking into the affair of Robinhood and the Redditors.
At least in so many words. The Securities and Exchange Commission made a joint statement on Friday expressing concern over the "extreme price volatility of certain stocks’ trading prices over the past several days."
Though
the commission did using the words "Gamestop," "Robinhood," or
"Reddit," it's obvious that what the commission is talking about is the
recent chaos surrounding the three. It's already attracted major regulatory pressure. The SEC did, however, specify:
"The
Commission will closely review actions taken by regulated entities that
may disadvantage investors or otherwise unduly inhibit their ability to
trade certain securities."
Robinhood, already the
subject of enormous backlash from its users, is clearly in the sights of
this announcement. It is not unprecedented for Robinhood to shut down
trading on GME and other stocks; it is, however, suspicious that the firm cut off buying but not selling.
source link : https://cointelegraph.com/news/sec-is-looking-into-robinhood-s-handling-of-gamestop-trading
