This is done using key word searches, including company names, Brady said. Social media “scrapers” are among the tools already being used by regulators across the country to sift through online activity and unearth potential market misconduct.
“(We) will take appropriate regulatory action to protect investors if we identify that abusive or manipulative trading activity may be taking place,” the Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada said in the statement. In a joint statement last week, Canada’s provincial securities regulators and the national investment industry regulator said they are monitoring the volatile trading and what’s driving it. The GameStop scheme is like Wolf of Wall Street on steroids - and it won’t end well for those left holding the bag.Bubbles in everything: The GameStop stock frenzy is part of a trend that’s unsettling the financial world.Once a ‘stonk,’ Hertz reveals dilemma companies face in Reddit frenzy.
Reddit revolution leaves market regulators with limited playbook - but Canadian watchdogs may have an edge.On the books since the 1960s, this power has historically been reserved for conduct that rises of the level of “abusive” to investors or the capital markets. “Putting that aside, the new tools, this sort of ‘don’t lie’ provision, it could apply,” he said, “if the investigation supports it.”Īs others have suggested, Brady said Canadian regulators could also attempt to deal with the novel situation by using a discretionary power that allows them to make orders that are “in the public interest” even if there isn’t a specific breach of securities law.
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