Wall Street Mania Poised to Spur SEC Focus on Apps, Shorts, T+2
- Analysts, ex-regulators offer remedies to fix troubled market
- Hedge funds, Reddit and Robinhood all likely to get scrutiny
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Smartphone apps, short-selling rules and steps to ensure broker solvency are all sure to get a closer look from Washington policy makers once the dust settles on the market turmoil that has buffeted GameStop Corp. and silver since the start of the year.
Social media is also poised to be scrutinized, with a focus on how Reddit and Twitter have been used to mobilize herds of investors to all make the same trades. Investigations into manipulation will keep the Securities and Exchange Commission busy for the foreseeable future. The House Financial Services Committee has scheduled a hearing for Feb. 18, likely putting government watchdogs and firms such as Robinhood Markets on the hotseat.