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BRIEF-Fitch Says U.S. Financial Institutions Face Second Order Effects From Gamestop Volatility

· 02/04/2021 17:15
BRIEF-Fitch Says U.S. Financial Institutions Face Second Order Effects From Gamestop Volatility

- Fitch:

  • FITCH SAYS U.S. FINANCIAL INSTITUTIONS FACE SECOND ORDER EFFECTS FROM GAMESTOP VOLATILITY

  • FITCH- NEW MARKET DYNAMICS, INCL. SOCIAL MEDIA'S ABILITY TO RAISE RETAIL INVESTORS' IMPACT, MAY HAVE LONG-TERM IMPLICATIONS FOR FINANCIAL INSTITUTIONS

  • FITCH, ON GAMESTOP VOLATILITY, SAYS EXPECTS LIMITED RATING IMPLICATIONS FOR CLEARINGHOUSES GIVEN STRONG RISK MANAGEMENT FRAMEWORKS

  • FITCH SAYS INCREASED RETAIL TRADING IN COMMODITIES COULD INCREASE PRICE VOLATILITY, RAISE MARGIN REQUIREMENTS FROM DERIVATIVES CLEARINGHOUSES

  • FITCH SAYS ALTHOUGH COORDINATED RETAIL TRADING MAY HAVE LIMITED DIRECT SYSTEMIC IMPACTS, IT CAN RESULT IN ELEVATED MARGIN MODEL RISK

  • FITCH SAYS CENTRAL BANK LIQUIDITY SUPPORT MAY NOT BE AS FORTHCOMING IN AN IDIOSYNCRATIC STRESS, RAISING BROKERS & CLEARINGHOUSES' COUNTERPARTY RISK

  • FITCH SAYS RETAIL BROKERS WILL LIKELY FACE MODEST EARNINGS HEADWINDS FROM INCREASED INVESTMENT IN TECHNOLOGY AND STAFF TO MEET INCREASED VOLUMES

  • FITCH SAYS RETAIL BROKERS MAY FACE REGULATORY SCRUTINY RELATED TO RECENT TRADING STOPPAGES, INVESTOR PROTECTIONS, PRODUCT SUITABILITY

Source text for Eikon: ID:nFIT6RSL6X

Further company coverage: GME.N


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