The Journal of Financial Compliance published a practice paper covering US financial market regulators' interest in retail trading and broker-dealer practices following the January 2021 'meme stock' market volatility. The authors examined broker-dealer practices and trading rules that were the subject of pending litigation. The paper reviewed areas of potential regulatory interest in the aftermath of the trading frenzy, including payment for order flow and related customer disclosures. It also examined the rationale for certain trading restrictions implemented by some broker-dealers during the period of extreme volatility. It further reviewed defenses for broker-dealers in pending investor litigation and the potential criminal and regulatory liability for amateur traders active on social media and online forums.
"What does it all meme? An exploration of meme stock litigation, regulatory scrutiny and defences for broker-dealers," Journal of Financial Compliance, Volume 5, Number 2, August 11, 2021
Subscription required for article access
Related Professionals
-
Partner and Co-Chair, Broker-Dealer Regulation+1.212.940.8599 -
-
New York
