SEC to review actions by companies amid market volatility
The United States Securities and Exchange Commission (SEC) today issued a statement regarding the recent market volatility.
As previously guided, the regulator said it was closely monitoring and evaluating the extreme price volatility of certain stocks’ trading prices over the past several days. The Commission notes that the core market infrastructure has proven resilient under the weight of this week’s extraordinary trading volumes. Nevertheless, extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence.
The SEC said it is working closely with its regulatory partners, both across the government and at FINRA and other self-regulatory organizations, including the stock exchanges, to ensure that regulated entities uphold their obligations to protect investors and to identify and pursue potential wrongdoing.
“The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities”.
Although no names were mentioned in the SEC’s statement, it is worth noting that one particular company, that being Robinhood, has faced a wave of discontent over its decision to restrict trading in 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 regulator warned.
Members of the public can submit tips or complaints through the Commission’s website using this online form. Members of the public with questions should contact the Commission’s Office of Investor Education and Advocacy at 1-800-732-0330, ask a question using this online form, or email the SEC at Help@SEC.gov.