Weekly Roundup
Congressional Attention on GameStop Volatility – Congressional eyes turned to recent volatility in the markets because of GameStop trading, as well as broader equity market structure questions concerningtechnological changes in the markets, the business model of “free” trading and payment for order flow, the role of social media and gamification, transparency and investor protections, in addition to concerns aboutincome inequality.
Social Media and Investing – The SEC has published resources on social media and investing.FINRA staff have similarly published materials titled “Following the Crowd: Investing and Social Media”, which includes tips such as: consider your source, know the rules if you are day trading, understanding the costs and risks of margin trading, get the basics on optionstrading, and doing an emotional self-check in, amongst other advice.
Democratizing Investment – In advance of the House Financial Services Committee hearing on GameStop, MMI CEO Kirsten Wegner published an op-ed in Morning Consult titled, “The GameStopHearings Should Address Democratization of Investing”.
Cybersecurity & Source Code – Theft of source code continued to garner headlines, with reports ofreverse-engineering the Grand Theft Auto source code.
In the Mix: This Week’s Top FinTech Thought Leader
- Chair Maxine Waters (D-CA) of the House Financial Services Committee, continued her thought leadership on fair and orderly markets to ensure a thorough review of recent GameStop volatility, noting two further hearings to continue conversations including a panel of industry experts, and a hearing of regulatory witnesses from the SEC and FINRA.
- Reddit “Roaring Kitty” user Keith Gill testified at the GameStop hearing, explaining his rational behind his “diamond hands” and social media perspective.
- Jennifer Schulp, Director of Financial Regulation Studies, Cato Institute, testified at the GameStop hearing, sharing her perspectives on reduced cost of trading for retail investors and the rise of the retailinvestor.