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DJ Regulators Say Market Infrastructure Was Resilient in GameStop Frenzy--2nd Update

· 02/04/2021 18:36
By Kate Davidson

Top financial regulators meeting Thursday to discuss recent market volatility related to GameStop Corp. concluded that "the core infrastructure was resilient," the Treasury Department said in a statement following the meeting.

The regulators believed the infrastructure stood up "during high volatility and heavy trading volume" and agreed "on the importance of the SEC releasing a timely study of the events," the Treasury Department said, in a reference to the Securities and Exchange Commission.

Treasury Secretary Janet Yellen "believes it is imperative to uphold the integrity of these markets and ensure investor protection," the statement said.

Ms. Yellen convened the meeting with officials from the SEC, Commodity Futures Trading Commission, Federal Reserve Board and Federal Reserve Bank of New York to discuss the frenzied trading in recent weeks. The Treasury Department said they discussed market functionality and recent trading practices in equity, commodity and related markets.

The Reddit-fueled frenzy in stocks such as GameStop, a video-game retailer, and AMC Entertainment Holdings Inc. has drawn scrutiny from regulators and prompted complaints that the trading, which sent some stock prices soaring, was manipulative.

The SEC said last week it planned to closely review the actions of some brokerage firms that restricted investors' ability to trade in GameStop and other volatile stocks, a sign regulators were examining potential misconduct.

Thursday's meeting took place at a time when two key regulatory agencies -- the SEC and the Commodity Futures Trading Commission -- are headed by acting chiefs. Gary Gensler, President Biden's pick to head the SEC, awaits Senate confirmation.

Write to Kate Davidson at kate.davidson@wsj.com

(END) Dow Jones Newswires

February 04, 2021 18:36 ET (23:36 GMT)

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