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Everything You Need to Know about the House Financial Services Committee Hearing on GameStop, Robinhood, Citadel, Reddit, Roaring Kitty & Rigged Markets

The House Committee on Financial Services held a virtual hearing Thursday, Feb. 18, entitled "Game Stopped? Who Wins and Loses When Short Sellers, Social, Media and Retail Investors Collide." You can watch a recording of the hearing on the Committee’s website here.

We identified the key issues the Committee and hearing should address in a letter to the Committee: ripping off retail investors; gamification; payment for order flow; conflicts of interest; transparency; short selling activities; high frequency trading; best execution; manipulation; capital and liquidity requirements; forced arbitration; and the consolidated audit trail. 

Better Markets also urged the Committee to not limit itself to investigating the role of a few individual obvious actors but to thoroughly examine the unseen players in the complex market ecosystem that made these events possible in the first place. 

In addition to the letter, Better Markets issued a press release as well as three fact sheets providing additional detail on the key issues plus insight into why/how the GameStop frenzy occured; who some of the players are and a break down of many of the terms and activities relevant to this complex topic.

LETTER to House Committee on Financial Services

PRESS RELEASE Better Markets' Letter to House Financial Services Committee on Key Issues for Thursday’s Hearing on GameStop Trading and the Role of Robinhood, Citadel, Reddit

CITADEL FACT SHEET: Who is Citadel and why should you care?

PAYMENT FOR ORDER FLOW FACT SHEETS: What is payment for order flow & how it rips off retail investors. Short Version and Long Version

CAT FACT SHEET: Stands for consolidated audit trail, a long overdue, transparency and accountability measure to protect investors and the integrity of the U.S. securities markets.

MEMO TO INTERESTED PARTIESThis memo was released in advance of the House Financial Services Committee hearing on Thursday, Feb. 18, 2021, and includes information on the key issues that should be discussed at that hearing as well as links to additional materials that provide greater detail.
 

HEARING HIGHTLIGHTS: The HFSC hearing lasted more than 5 hours, but you don’t have watch it all to see some of the key highlights – we’ve got them here in just 23 minutes!  See Chair Maxine Waters, AOC, Jim Himes, Ritchie Torres, Al Green, Cindy Axne, Rashida Tlaib, Jesus “Chuy” Garcia and more!

 

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