The US Securities and Exchange Commission (SEC) report on January's GameStop volatility found that the US markets functioned well.
- the basic plumbing of the market remained "sound"
- also found that positive sentiment on GameStop rather than dislocations caused by short-selling was the main driver of the stock spike
- The SEC said it found no evidence that some hedge funds were 'naked' shorting the stock - selling without arranging to borrow the shares
More to read on the report here at Reuters.
SEC press release on the report is here
Full SEC report is here if you want all of it:
This bit from the Reuters piece:
- Amid the intense volatility, several brokerages restricted trading in the affected stocks, curbing the rally, infuriating retail traders, sparking outrage from policymakers, and leading to a Congressional hearing.
Investigate the brokers that pulled the pin on trading.