Gary Gensler, the new chairman of the Securities and Exchange Commission, has expressed concern over the popular sector of Citadel Securities and other major trading organizations playing in US markets, warning that “health competition” could be at risk.
Mu evidence has been released before appearing before the housing committee on Thursday, Gensler said he had told his staff to see if the policies needed to address the few market developers who are taking a bigger share of the market.
“One company, Citadel Securities, has publicly announced that it will provide up to 47 percent of its total revenue. In January, two companies released the most powerful of all but one exchange, the Nasdaq, “Gensler said.
“History and economics tell us that once markets are stable, companies with more markets have a better chance of making a profit,” he said. “The stock market can also lead to problems, hinder healthy competition, and hinder innovation.”
Gensler is expected to appear on third hearing in the explosive trade in GameStop and other so-called meme stocks in January.
The increase in trade in the U.S. came in the same month as businessmen flocked to the markets, prompting traders like Robinhood to impose restrictions that angered women and the interest of lawmakers.
Market activity encouraged policymakers in Washington and investors. Lawmakers focused on “payroll transactions”, in which traders like Robinhood are paid to lead to market makers like Citadel Securities and Virtu.
Doing this has been beneficial for the reformers. It generated nearly $ 1bn for Robinhood, Charles Schwab and ETrade in the first quarter, according to Piper Sandler.
Gensler also pointed out that some countries, including the UK and Canada, do not allow funding to be available.
“Many types of business bring a lot of revenue to its management,” he said. “This brings to mind a number of questions: do brokers with brokers have inherent disputes? If so, are clients being properly offended by the dispute resolution?”
Mr Gensler also said he had told co-workers to consider their claims in order to disclose more on the return pages, which are used by the Archegos family office. The car, driven by businessman Bill Hwang, crashed in March after several bets were moved against the group, and banks have kept more than one. $ 10bn of losses as a result.
Market managers have expressed concern that regulators are not paying close attention or are unaware of the large projects Archegos is undertaking.
“Whenever there are major events in the market, it is important to consider the potential risks to the overall financial situation, even if the machine is in place,” Gensler said.
“Interest-related factors, whether those selling or exchanging warehouses, could exacerbate potential problems in the meantime, should anyone with a larger share or market fail.”