SEC comments on the extreme volatility
The SEC is coming on the extreme volatility and takes a neutral view at least on the surface
- closely monitoring extreme price volatility of certain stocks trading prices
- will work to protect investors, to maintain fair, orderly, and efficient markets, and to facilitate capital formation
- will closely review actions taken by regulated entities that may disadvantage investors or inhibit their ability to trade certain securities market participants should be careful to avoid illegal manipulative trading activity
- issuers must ensure compliance with US securities laws
On one hand, the SEC says they will look to protect investors. Does that mean they don't encourage the price activity seen this week? I am not too sure. On the other hand they come to the retail investors defense by saying they will review certain actions that may "disadvantage investors". I assume they are talking about preventing the buying in certain stocks.
The US stocks are set to open lower with the S&P index -19 points, the Dow -188 points and the S&P down -78 points in premarket trading