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Earlier quoted context omitted.
It specifies trading activity . I read this as a warning to WSB, not their brokerages.
WSB is not a regulated entity, but presumably Robinhood is.
"The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities. In addition, we 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." This shoul…
Is that aimed at "professional hedge funds" or self-proclaimed "autists" in an internet forum?
In summary, just a vague "we are watching" statement.
My attention was caught by this paragraph: > In addition, we 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. Likewise, issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities. I'm n…
Earlier quoted context omitted.
It specifies trading activity . I read this as a warning to WSB, not their brokerages.
No. WSB is not "a regulated entit[y]" that "disadvantage[d] investors or otherwise unduly inhibit[ed] their ability to trade certain securities". Robinhood is and did.
What are the odds of a flash crash in the next week as a result of this activity? The system of banks and market makers and clearing houses is a always way more coupled than the the owners let on... history shows they don't know how to risk manage these sorts of situations.
Assuming they're being honest - and I see no reason to doubt it - it's refreshing, compared to Robin Hood's communications, and more importantly it highlights your point. The "backend" of the market seems way more coupled than I imagined it is.
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[0] - https://twitter.com/freetrade/status/1355161107699273729
[1] - https://old.reddit.com/r/wallstreetbets/comments/l7u3ag/free...
In summary, just a vague "we are watching" statement.
"The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities. In addition, we 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." This shoul…
"Abusive or manipulative trading activity that is prohibited by the federal securities laws." Is that aimed at "professional hedge funds" or self-proclaimed "autists" in an internet forum?
What are the odds of a flash crash in the next week as a result of this activity? The system of banks and market makers and clearing houses is a always way more coupled than the the owners let on... history shows they don't know how to risk manage these sorts of situations.
However for the broader market; GME and friends are tiny.
Ristricting trading is a way of managing risk.