By Aaron Nicodemus2021-05-06T18:39:00+01:00
New Securities and Exchange Commission Chairman Gary Gensler laid out some of his regulatory priorities during virtual testimony to Congress on Thursday. He discussed shortening the settlement period for trades and requiring new disclosures by broker-dealers.
In his opening statement before the House Committee on Financial Services, Gensler said he is asking SEC staff to produce a report on the “meme stocks” craze from earlier this year that led to wild fluctuations in several previously overlooked stocks like GameStop and AMC Entertainment Holdings. He said staff is examining who benefits from the “gamification” of stock trading, as well as payment for order flow, in which companies like Robinhood Financial derive revenue by delivering orders to other partners to execute. Gensler said he wants to understand whether those practices prey on inexperienced traders.