GameStop Prompts U.S. to Consider New Rules for Options, Shorts
- SEC, Finra leaders say they are reviewing regulatory gaps
- Agencies respond to questions from Senator Elizabeth Warren
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The GameStop Corp. trading frenzy has prompted U.S. regulators to consider new rules for everything from short-selling to investing with options and gamification, indicating watchdogs are just getting started in responding to the market mayhem.
In a letter to Senator Elizabeth Warren, acting Securities and Exchange Commission leader Allison Herren Lee ticked off several rule changes that the regulator should “seriously consider.” They include toughening requirements for brokers that offer options trading, new demands for brokers that sell their customers’ stock orders to other firms and stepped up disclosure standards for hedge funds and other traders who bet against shares.