SEC says it monitors continued volatility in certain stocks

AMC Empire 25 off Times Square is open as New York theaters reopen for the first time in a year after the coronavirus shutdown on March 5, 2021.

Angela Weiss | AFP | Getty Images

The United States Securities and Exchange Commission said Monday it was closely monitoring wild trading in stocks even recently to ensure market stability.

“SEC staff continue to monitor the market in light of the continued volatility of certain stocks to determine if there have been market disruptions, manipulative transactions or other improper behavior,” said a holder. SEC word to CNBC. “In addition, we will act to protect retail investors if violations of federal securities laws are found.”

The comment came as retail exploded in a handful of speculative names including AMC Entertainment, BlackBerry, Bed Bath & Beyond and, to a lesser extent, GameStop. Retail investors continued to cram into these names as they cheered each other on on social media platforms such as Twitter and Reddit’s WallStreetBets forum.

During AMC’s 83% advance last week, the stock was on several occasions the most active name on the Nasdaq. AMC has climbed over 100% this month alone in intense trading after a 160% lead in May, pushing its 2021 rally to over 2,500%.

TD Ameritrade has taken steps to increase the margin requirements on AMC and GameStop to 100%, which means investors are required to buy all securities in cash.

In January, amid GameStop’s historic tightening, the SEC pledged to protect individual traders and to carefully review actions taken by brokerage firms that could “disadvantage investors or unduly hamper their ability to trade certain securities.” .

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