Treasury Secretary Janet Yellen has called a meeting with top financial regulators to discuss the recent volatility in financial markets related to GameStop Corp
, A Treasury spokesman confirmed on Tuesday night.
Ms. Yallen, who chairs a council of regulators overseeing the risks to financial stability, held meetings with officials of the Securities and Exchange Commission, the Federal Reserve, the New York Fed, and the Commodity Futures Trading Commission, Treasury spokesman Alexandra Lamana Have said .
“Secretary Yellen believes the integrity of markets is important and has asked for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” said Ms. Lamana.
The meeting, which is expected to take place early Thursday, was previously reported by Reuters.
A group of day traders rallied together to buy GameStop’s shares in recent weeks, driving more than 10 times the price and complaining about frantic activity that was manipulated.
The SEC said on Friday it planned to closely review the actions of some brokerage firms, which prohibit a clear indication of investor volatility stocks such as Gametop, a clear indication that around the regulatory trading game Investigating potential malpractices that swamped like Gametop, AMC Entertainment. contain of Inc.
And novavax Inc.
Robinhood Markets Inc. restricted investors’ ability to purchase shares in Gametop and 12 other companies last week as it dealt with the impact on its financial needs by increasing trading.
Analysts expect the trading frenzy to potentially pass SEC rules on brokerage firms to ensure they have sufficient capital during periods of market volatility. Some lawmakers on Capitol Hill have also proposed legislative changes, such as restrictions on reduced sales and financial transaction taxes, which may address the situation.
Asked about trading volatility on Monday by White House press secretary Jane Saki, the SEC has been reviewing and monitoring the situation, saying “market volatility in recent times has resulted in an important set of policy issues, and we It seems that the Congress attention is appropriate on these issues.
GameStop saw its biggest one-day percentage drop on Tuesday, limiting $ 135, or 60%, to $ 90. This gain has been eroded for the past one week, although the videogame company’s stock is still 378% for the year.
write to Kate Davidson at [email protected]
Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8