The boom in "retail investors fighting predators" launched by U.S. netizens has gradually subsided, and the stock price of the game station, one of the protagonists, fell by 60% on Tuesday, and Robin, an online trading platform that restricts customer trading, took the opportunity to call on regulators to promote reforms for real-time settlement. Reuters reported that U.S. Treasury Secretary Yellen will convene regulators this week to discuss market volatility.
<h1>Retail investor enthusiasm waned, and the share price of the game station fell sharply</h1>
As retail investors' enthusiasm for a showdown with short-selling agencies waned, U.S. game retailer Game Station plunged 60 percent on Tuesday to close at $90, its biggest one-day decline since its listing in 2002 and a $28 billion evaporation from its high on Thursday. The previously sought after cinema line AMC and Gauss Electronics also fell by 40%.
Retail investors' enthusiasm for silver also waned, and with some retail investors taking advantage of the high exit, new York's March futures closed at $26.40/oz, giving up nearly 10%. The London Bullion Market Association said silver trading in the London market surged to more than 1 billion ounces on Monday, three times the normal level in recent months, and U.S. commodity regulators also said they were closely monitoring silver price volatility.
Pang Zhe Phoenix TV correspondent in the New York Stock Exchange:
Now, an interesting news is that Netflix has said it wants to make the incident into a movie, and there is some speculation on the Wall Street Forum's website about who will play these roles. They also said they hope to provide a more happy ending for the film. In fact, there are many professional investment traders on Wall Street, and they are still supportive of retail investors in these Wall Street forums.
Schneider, trading director of market measurement companies, believes that the bears specialize in tracking financially difficult business institutions, and then selling on a large scale, driving down stock prices, resulting in a dilemma for the survival of many companies, and the game station is one of them. "Hedge funds are not innocent, they hurt the survival of hundreds of companies."
<h1>Is strengthening retail regulation the best way to go? </h1>
The latest statistics from Reuters show that The net worth of hedge funds in 2020 is $2.9 trillion, if you add their leverage, the net assets of borrowing are $6.3 trillion, in the entire financial market, it seems that this money is not particularly amazing, but it is worth noting that these money are concentrated in a very small number of large companies, if these few large hedge fund companies suffered huge losses, must be consolidated, will it lead to a tightening of liquidity, and finally the Federal Reserve to come to the rescue?
The fact that large hedge funds have caused the Fed to come to the rescue is not without it. Long-term asset management funds had such a crisis, but then-Fed President Greensban summoned all the big banks in New York and asked them to forget the debt borrowed by these hedge funds, so as to disband the hedge fund, and then everyone got some compensation they could get. But should the operators of hedge funds be further carefully evaluated by market participants, and the assessment of Congress and legislation?
According to a Bloomberg poll on Tuesday, most investors believe that hedge funds' naked short selling of 150% of the company's floating stocks in the company market has caused the market to behead the trading opportunities to emerge, triggering wall Street forum investors to enter the market to chase higher stock prices and push up the volatility of the US stock market, which should arouse the vigilance of regulators. In addition to the review of speech on social networking platforms, the trading ethics of institutional investors, including short trading, should also be strictly regulated.
According to the poll, the appeal and action ability of the social networking site forum are beyond expectations, proving that the current traditional regulatory regulations and methods are no longer applicable to the new trading environment created by the technical capability, so it needs to be reformed. But monitoring retail trading platforms is not the best way.
Schneider, trading director for Market Metrics, said she doesn't want to see the SFC introduce regulations restricting retail investors' investment behavior. "I love these social forums and I love their transparency. I'm also bullish on their sensitive tracking of short-selling opportunities, reminding institutional investors that they are not all winners. ”
Robin Mane Company, an online trading platform that earlier said that it would restrict retail investment in order to protect the company's interests, CEO Tenev took the opportunity to call for regulators to take the opportunity to reform the settlement period of "T+2" of US stock trading and change it to instant settlement. Tenev pointed out that the restriction on customer trading is due to the large fluctuation of individual stock stock prices, the clearing house's margin requirements for brokers have increased significantly, in order to protect the interests of the company, the company has to limit the trading volume of retail investors.
Reuters quoted Treasury officials as saying treasury secretary Yellen would convene the heads of the U.S. Securities and Exchange Commission, the Federal Reserve, the Bank of the New York Fed and the U.S. Commodity Futures Trading Commission this week to discuss market volatility related to the game station. According to the source, Yellen asked to know whether the incident was in line with the principles of protecting investors and fair and efficient markets. In addition, the U.S. House of Representatives Financial Services Committee will hold a hearing on the 18th of this month, and Tenev is expected to attend the testimony.
Source: Phoenix Satellite TV Information Station, Pang Guan
Edit: Li Wei