Regulators to meet as brokers call time on Reddit-trader rollercoaster | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Tuesday
May 20, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
TUESDAY, MAY 20, 2025
Regulators to meet as brokers call time on Reddit-trader rollercoaster

Global Economy

Reuters
03 February, 2021, 01:05 pm
Last modified: 03 February, 2021, 01:09 pm

Related News

  • Dr Tahmeed Ahmed of icddr,b named to TIME’s 100 most influential in global health
  • Islamic Foundation sets 1:30pm for Jumma prayers in country's all mosques
  • BNP delegation to meet CA Yunus on 16 April to discuss election, reform issues
  • Investing in time: Bangladesh’s growing fascination with luxury watches
  • Chatradal holds meeting with 28 student orgs, Shibir and Anti-Discrimination Student Movement not invited

Regulators to meet as brokers call time on Reddit-trader rollercoaster

GameStop shares have fallen 80% from a peak a week ago, while AMC Entertainment stock has shed 60%

Reuters
03 February, 2021, 01:05 pm
Last modified: 03 February, 2021, 01:09 pm
FILE PHOTO: GameStop logo is seen in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration
FILE PHOTO: GameStop logo is seen in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration

Hedge funds, small investors and their stockbrokers are bracing for tougher US markets regulation, with officials expected to meet this week to assess the fallout from a social-media driven trading frenzy that has roiled stocks and silver prices.

Mass buying by amateur traders over the past two weeks has driven wild price gyrations in companies that big US fund managers had bet against, including videogame retailer GameStop and cinema operator AMC Entertainment.

As their brokers have imposed buying curbs, small traders' darling stocks have tumbled for two days running. Early trade in their Europe-listed shares on Wednesday will be the next guide as to whether they are in freefall just as regulators circle.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

GameStop shares have fallen 80% from a peak a week ago, while AMC Entertainment stock has shed 60%. The stocks had gained as much as 2,300% and 800% respectively since mid-January, fuelled by posts on the popular Reddit forum WallStreetBets.

Silver, which briefly surged on Monday as small traders bought up the metal, steadied about 10% below its recent peak.

"The unwind is obvious," said Oriano Lizza, premium sales trader at brokerage CMC Markets in Singapore. But he added that it would be easy for nimble small investors to regroup and target fresh companies.

"I think from a regulatory standpoint the concern is that they could continue to do this," he said.

The head of the US Securities and Exchange Commission, which regulates markets, will meet with Treasury Security Janet Yellen and the heads of the Federal Reserve and the Commodity Futures Trading Commission as soon as Thursday, a Treasury official told Reuters.

Yellen has asked to discuss recent volatility and whether trade has been consistent with fair and efficient markets.

It is not clear if it will result in action, but experts expect focus to also fall on the ever-larger role played by non-bank firms such as hedge funds in the financial markets and small traders are bracing for a showdown.

"Final boss fight. It's happening tomorrow with Yellen, SEC and Federal Reserve," read one Wednesday post on Reddit. "They are either going to try and stop the party or they are looking for money to pay us and not crash everything at the same time."

Retail Mania

Small investors' participation in stockmarkets has exploded over the past year as pandemic lockdowns, volatility and stimulus payments have driven a worldwide day-trading craze.

The phenomenon has pushed equity indexes from New York to Seoul to record heights and boosted the price of assets from cyptocurrencies to new stock market listings.

The assault on GameStop short-sellers took it to a new level as small traders appeared to act in concert as they organised buying over Reddit. Posts encouraging silver buying also boosted prices on Monday, although that proved shortlived.

"The power of the retail investor exists," said Chris Brankin, CEO at TD Ameritrade in Singapore.

"We could see other similar events more regularly, but be sure the regulators will look to curb any market (volatility) or manipulation," he said.

In the washup, Melvin Capital, one of the biggest funds betting on a drop in GameStop's share price, lost 53% in January. Others, such as billionaire investor Steven Cohen's Point72 Asset Management lost nearly 9%, investors said.

Online broker Robinhood has also come under pressure and has scrambled to raise more than $3 billion in a week as it races to meet funding neets stemming from the trading boom.

Robinhood further relaxed some of its restrictions on trade on Tuesday, increasing buying limits on GameStop stock, for example, from 20 shares to 100 shares.

Frankfurt listed GameStop shares begin trading at 0700 GMT and they open for US pre-market trade at 0900 GMT.

World+Biz

Regulators / meet / Call / Time / Reddit-trader

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • British Prime Minister Keir Starmer speaks during a reception, following the UK-EU summit, in London, Britain, May 19, 2025. REUTERS/Hannah McKay/Pool/File Photo
    UK suspends trade talks with Israel, summons ambassador, issues sanctions over new Gaza offensive
  • A file photo of the NBR Bhaban in Agargaon, Dhaka
    NBR dissolution: Protesters say meeting with advisers not fruitful, announces sit-in programme tomorrow
  • 36 Bangladeshi trucks carrying ready-made garments were stranded at Benapole land port on Sunday. Photo: Collected
    Land port restrictions and the Kaladan project: Is bilateral trade between India and Bangladesh falling apart?

MOST VIEWED

  • Lotto inaugurates new factory to nearly triple production capacity
    Lotto inaugurates new factory to nearly triple production capacity
  • Ikramul Hasan Shakil at the Base Camp of Mount Everest. Photo: Collected from Shakil's official Facebook page
    From sea to summit: Shakil walks from Cox's Bazar to conquer Everest
  • Illustration: Collected
    Unemployment rate hits historic high, rises to 4.63% as 27.4 lakh now jobless
  • Representational image
    Govt plans to scrap reduced tax benefits for textile sector
  • Saleh Uddin Ahmed. Sketch: TBS
    Large depositors in troubled banks to be offered shares, bonds: Salehuddin
  • The Chattogram Custom House building in Chattogram. File Photo: Collected
    Ctg custom house pen-down strike continues for 5th day

Related News

  • Dr Tahmeed Ahmed of icddr,b named to TIME’s 100 most influential in global health
  • Islamic Foundation sets 1:30pm for Jumma prayers in country's all mosques
  • BNP delegation to meet CA Yunus on 16 April to discuss election, reform issues
  • Investing in time: Bangladesh’s growing fascination with luxury watches
  • Chatradal holds meeting with 28 student orgs, Shibir and Anti-Discrimination Student Movement not invited

Features

Fired by US aid cuts, driven by courage: A female driver steering through uncertainty

Fired by US aid cuts, driven by courage: A female driver steering through uncertainty

6h | Features
Photo: TBS

How Shahbagh became the focal point of protests — and public suffering

1d | Panorama
PHOTO: Collected

Helmet Hunt: Top 5 half-face helmets that meet international safety standards

2d | Wheels
Photo: Collected

Simple accessories to extend the life of your luggage

2d | Brands

More Videos from TBS

How is China the 'winner' of the India-Pakistan conflict?

How is China the 'winner' of the India-Pakistan conflict?

1h | Others
Why ADP implementation rate lowest in education and health sectors?

Why ADP implementation rate lowest in education and health sectors?

1h | Podcast
Chief Advisor's meeting with the chief of Armed Forces

Chief Advisor's meeting with the chief of Armed Forces

2h | TBS Today
News of The Day, 20 MAY 2025

News of The Day, 20 MAY 2025

3h | TBS News of the day
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net