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6/7/2021, 10:01 PM (Source: TeleTrader)
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SEC weighs stricter rules for apps like Robinhood - report

Chairman of the United States Securities and Exchange Commission (SEC) Gary Gensler is considering imposing the Regulation Best Interest rule on trading apps like Robinhood due to his concern over the volatility seen in so-called meme stocks, Fox Business reported on Monday.

If enforced, the rule would require Robinhood and other discount brokers to warn users about potentially risky investments such as in AMC Entertainment Holdings and GameStop. The decision would also be costly for these popular trading apps.

Earlier, the SEC announced that it is monitoring ongoing volatility in meme stocks.

Baha Breaking the News (BBN) / JC