Yellen calls for meeting over US market volatility

WASHINGTON (AFP) – United States (US) Secretary Treasury Janet Yellen has requested a meeting with financial regulatory authorities to discuss recent market volatility following a social-media-fuelled buying frenzy over shares in video game store GameStop and other stocks shorted by hedge funds.

Yellen called for the meeting with the Securities and Exchange Commission (SEC), the Federal Reserve and the Commodities Futures Trading Commission, the Treasury said in a statement late Tuesday.

“Secretary Yellen believes the integrity of markets is important and has asked for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” it said.

Republican and Democratic politicians have called for a review of trading regulations in recent days after a group of online small-time stock traders helped boost the share prices of previously falling stocks, including GameStop and movie theatre brand AMC Entertainment.