{"id":79693,"date":"2021-10-19T00:30:03","date_gmt":"2021-10-19T04:30:03","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=79693"},"modified":"2021-10-19T00:21:25","modified_gmt":"2021-10-19T04:21:25","slug":"sec-releases-report-on-equity-and-options-market-structure-conditions-in-early-2021","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2021\/sec-releases-report-on-equity-and-options-market-structure-conditions-in-early-2021.html","title":{"rendered":"SEC Releases Report on Equity and Options Market Structure Conditions in Early 2021"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has\u00a0published a <a href=\"https:\/\/www.sec.gov\/files\/staff-report-equity-options-market-struction-conditions-early-2021.pdf\">Staff Report on Equity and Options Market Structure Conditions in Early 2021<\/a>,\u00a0which focuses on the January 2021 trading activity of <strong>GameStop Corp<\/strong> (GME), the most famous of the &#8220;meme stocks.&#8221; Because the meme stock episode raised several questions about market structure, the staff report also provides an overview of the equity and options market structure for individual investors.<\/p>\n\n\n\n<p>&#8220;January&#8217;s events gave us an opportunity to consider how we can further our efforts to make the equity markets as fair, orderly, and efficient as possible,&#8221; said SEC Chair Gary Gensler. &#8220;Making markets work for everyday investors gets to the heart of the SEC&#8217;s mission. I would like to thank the staff for bringing their expertise to this important report, and for their ongoing work on to address the issues that January\u2019s events raised.&#8221;<\/p>\n\n\n\n<p>The meme stocks experienced a dramatic increase in their share price in January 2021 as bullish sentiments of individual investors filled social media. As the companies&#8217; share prices skyrocketed to new highs, increased attention followed, and their shares became known as &#8220;meme stocks.&#8221; Then, as the end of January approached, several retail broker-dealers temporarily prohibited certain activity in some of these stocks and options. GME experienced a confluence of all of the factors that impacted the meme stocks: (1) large price moves, (2) large volume changes, (3) large short interest, (4) frequent Reddit mentions, and (5) significant coverage in the mainstream media.<\/p>\n\n\n\n<p>The Report concludes with the staff identifying areas of market structure and our regulatory framework for potential study and additional consideration. These include:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Forces that may cause a brokerage to restrict trading;<\/li><li>Digital engagement practices and payment for order flow;<\/li><li>Trading in dark pools and wholesalers; and<\/li><li>The market dynamics of short selling.<\/li><\/ol>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has\u00a0published a Staff Report on Equity and Options Market Structure Conditions in Early 2021,\u00a0which focuses on the January 2021 trading activity of GameStop Corp (GME), the most famous of the &#8220;meme stocks.&#8221; Because the [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-79693","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=79693"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79693\/revisions"}],"predecessor-version":[{"id":79694,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79693\/revisions\/79694"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=79693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=79693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=79693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}