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Mobius says regulators shouldn’t act against Reddit traders

Says he isn’t in favour of regulatory action against retail traders.
Mark Mobius, co-founder of Mobius Capital Partners. Image: Bloomberg

As authorities in the US take a closer look at stock-market activity amid the Reddit-fueled surge in GameStop Corp., veteran investor Mark Mobius says he isn’t in favour of regulatory action against retail traders.

“There definitely should not be any regulatory action,” Mobius said in an email interview. “The regulator should only ensure that trading is done efficiently and fairly with all buyers and sellers (regardless of their objectives) treated equally.”

The US Securities and Exchange Commission has said it is “actively monitoring” volatility in options and equities markets amid a surge in GameStop and other companies over the past week that prompted Democratic Senator Elizabeth Warren to demand action from regulators.

“We have not made any changes in our portfolio” based on retail flows, Mobius said.

GameStop plunged 44% Thursday, snapping a dizzying five-day rally, after several brokerages took steps to curtail activity in retail favourite stocks including the video-game retailer and AMC Entertainment Holdings Inc. However, the stock jumped in extended trading as Robinhood Markets said it plans to allow limited buying of certain securities that it had blocked.

The WallStreetBets forum is “by no means perfect but they’ve been well in the bounds of our content policy,” Reddit Inc. Chief Executive Officer Steve Huffman said on Thursday. He called the forum’s outsized influence on GameStop’s stock a “culture war of Wall Street versus everybody else.”

© 2021 Bloomberg

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Small Investors push back at Short-selling!!

What Wall Street really hates is outsider trading, the idea that people from outside their world might be getting rich. That’s the one sin they can’t abide.

‘They p***ed off a lot of people. It’s a no-win situation.’
The ‘Wolf of Wall Street’ himself, Jordan Belfort gives his two cents on the Reddit rebellion, Robinhood reaction and Barstool backlash – on Fox TV and Newsmax.

I personally met Jordan Belfort (”The Wolf at Wall Street), at a Seminar in Johannesburg some years ago – hence my hate in “short- selling ”!

Naked shorting is the issue and not shorting. Enabling naked shorting should be looked at and acted against.

End of comments.

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