The UK Financial Conduct Authority (FCA) today issued a warning regarding the recent spike in market volatility.

Using social media channels, the UK regulator posted the following message:

“We’re warning UK investors in certain US listed shares which are being discussed online to use extreme caution. Volatile markets are unpredictable and mean you can quickly lose money. Losses are unlikely to be covered by the Financial Services Compensation Scheme.”

Although the regulator did not mention the stock of any particular companies, FX News Group readers are well aware of the extraordinary volatility in GameStop and AMC stocks.

The FCA has thus far made no official statement as to whether it would check the actions of online trading firms with regard to these securities. The United States Securities and Exchange Commission (SEC), however, has earlier today issued a statement regarding the extraordinary market volatility.

Importantly, the SEC stated it will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.

In addition, the SEC said it will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity, the US regulator warned.