In the U.S. retail investors crazy speculation, video game retailer GameStop shares rose sharply, successfully hostage short-selling large investors, become the focus of global debate. Adena Friedman, chief executive of the Nasdaq exchange, said in an interview with foreign media on Wednesday (27) that the exchange is paying attention to the content of social media platforms and will order the suspension of shares if it finds any unusual activity in individual stocks.
GameStop shares continued to explode on Wednesday (27), at $324, up 119%; other recently touted stocks in the online platform also surged, AMC, BlackBerry rose 219% and 23%, respectively, these shares are listed on the New York Stock Exchange; as for the Express listed on the Nasdaq exchange also exploded 249%.
Friedman pointed out that the Nasdaq exchange has been acting as a “self-monitoring organization” whose role is to ensure that market activity is “legal” and to eliminate market manipulation. She did not mention which technology would be used to “evaluate social media chatter,” but said the exchange would be able to match unusual trades with social media activity and could order a suspension of the shares in question, as well as evaluate and investigate with the SEC.
In fact, the SEC will investigate one of the pull-up shipping scheme (Pump and Dump Scheme), that is, the conspirators bought a specific stock in advance, and then vigorously tout the stocks, thereby pushing up the stock price, and then sell the stock at high levels to take advantage.
Friedman said the exchange is working with the U.S. Financial Industry Regulatory Authority (FINRA) and the SEC is investigating whether the recent explosion of shares involved in illegal market manipulation, but it is unclear whether social media activity meets the definition of “pull up and ship”. She said regulators need to keep pace with today’s technology.
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