US Securities And Exchange Commission Considering Stricter Regulations
US Securities And Exchange Commission Considering Stricter RegulationsThe US Securities and Exchange Commission is examining stricter regulations after the collapse of the Archegos hedge fund and GameStop’s capricious prices. “Whenever there have been major market events, it is a good idea to examine what risks they could have had for the entire financial system,” said new SEC chief Gary Gensler in pre-published excerpts from a statement before Congress scheduled for today.
His staff is currently preparing possible steps such as a greater disclosure requirement for short sales, more transparency in securities lending and new requirements for certain complex swaps, as they would have played a role at Archegos. In addition, they want to get opinions on game-like elements in trading apps such as points and bonus systems.
The stock of video game retailer GameStop fluctuated for weeks early in the year after retail investors focused on the papers on Internet forums. Archegos – a major Credit Suisse customer – collapsed in March. In particular, the left wing of the Democrats in Congress, referred to as “progressive” in the US, is demanding that the SEC take stricter action on Wall Street after these incidents. In doing so, they have a particular eye on hedge funds. Gensler is due to testify before the House of Representatives Financial Services Committee.