One of the biggest stories of the year in gaming and stock trade has continued to be the absolute skyrocketing of GameStop’s (GME) stock value. Orchestrated by an organized effort of retail trades over on subreddit r/WallStreetBets, the stock went from under $10 to around $350 over the course of a month. It was activity that made hedge fund managers and Wall Street panic, as well as pushing lawmakers to speak out in outrage. Now, SEC Chairman Gary Gensler is set to post the results of an review of the situation which could have implications for retail traders, Wall Street, and more.
Gensler and the SEC promised that the report on GameStop’s short squeeze would be coming out shortly, as reported by Reuters. Having testified before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing earlier this year, Gensler has been a major part of the SEC’s review of the volatile situation regarding GameStop’s stock value and the hedge fund managers and short squeeze investors who suffered massive losses due to its spike.
There is no telling at this stage exactly what may come out in Gensler’s report on the GameStop stock situation. Those who have been following the matter closely say that the report could ultimately call for action, repercussions, and adjustment to the rules pertaining to retail trading, hedge funds, and clearing houses. Most notably, there was huge concern over the efforts of trade app platforms like Robinhood, who stepped in during the most chaotic points of the GameStop stock craze this year to artificially limit trade and try to protect hedge fund investors. It may also find itself caught up in Gensler’s upcoming report.
As we await the official release of the SEC and Gensler’s report, stay tuned here at Shacknews for whatever comes of it. We’ll have the details and implications here as soon as they become available.