41–50 of 906 posts
There's been some speculation that what WSB are doing could be market manipulation or otherwise illegal. The fact that this statement only mention retail investors in the context of protecting them makes me suspect that the SEC's not going for it.
Earlier quoted context omitted.
"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?
The big traders probably have friends in high places, so I suspect they're going after WSB and not wall street who caused the issues in the first place.
"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…
Earlier quoted context omitted.
In the mentioned stocks? Very high. However for the broader market; GME and friends are tiny. Ristricting trading is a way of managing risk.
The last giant crash was triggered by a single party (Bear Stearns) running out of credit. Do not underestimate the events that could follow if this volatility destabilizes a large market participant.
There's been some speculation that what WSB are doing could be market manipulation or otherwise illegal. The fact that this statement only mention retail investors in the context of protecting them makes me suspect that the SEC's not going for it.
Could be? It's an open, publicly-documented market manipulation event. How can there be any question about it? You might decide that this kind of manipulation is OK due to it's stated goals, but that doesn't make it not manipulation.
There's been some speculation that what WSB are doing could be market manipulation or otherwise illegal. The fact that this statement only mention retail investors in the context of protecting them makes me suspect that the SEC's not going for it.
Earlier quoted context omitted.
Could be? It's an open, publicly-documented market manipulation event. How can there be any question about it? You might decide that this kind of manipulation is OK due to it's stated goals, but that doesn't make it not manipulation.
>Could be? It's an open, publicly-documented market manipulation event. Strange question, what's the bar for market manipulation? For example if a company took out debt to buy their own stock in order to drive up the price would that count?
Earlier quoted context omitted.
It specifies trading activity . I read this as a warning to WSB, not their brokerages.
> we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity Specifically calls out retail investors (i.e. WSB). I read it the opposite way, but I can see how it could be interpreted as a warning to both.
140% shorts, including naked shorts from Melvin?
RH stopping buys but allowing sells?
Conclusive proof that Citidel put their finger on the scales to force RH's actions?
WSB's members constantly chanting hold/diamond hands/ride to the moon?
There's a lot at play, and further examination will make for a good post mortem...
Earlier quoted context omitted.
Could be? It's an open, publicly-documented market manipulation event. How can there be any question about it? You might decide that this kind of manipulation is OK due to it's stated goals, but that doesn't make it not manipulation.
I can't find any documentation that a short squeeze is illegal. Can you?
"Although some short squeezes may occur naturally in the market, a scheme to manipulate the price or availability of stock in order to cause a short squeeze is illegal."
From https://www.sec.gov/investor/pubs/regsho.htm.
It's an open question whether this case is more of a natural occurrence or "a scheme to manipulate", given that it's all randos who found a Schelling point and are now hyping each other up. I think it's fair to say it's unprecedented.
There's been some speculation that what WSB are doing could be market manipulation or otherwise illegal. The fact that this statement only mention retail investors in the context of protecting them makes me suspect that the SEC's not going for it.
Could be? It's an open, publicly-documented market manipulation event. How can there be any question about it? You might decide that this kind of manipulation is OK due to it's stated goals, but that doesn't make it not manipulation.
[1]https://www.bloomberg.com/opinion/articles/2021-01-26/will-w...