US financial regulators determined that the infrastructure of stock and commodity markets remained “resilient” during the volatility in trading seen over the past few weeks.
“The regulators believe the core infrastructure was resilient during high volatility and heavy trading volume,” according to a statement issued by the US Department of the Treasury following a meeting on Thursday convened by US Secretary of the Treasury Janet Yellen.
Officials also agreed that the US Securities and Exchange Commission (SEC) should issue a “timely study of the events.”
Yellen called the confab after surges in stocks including GameStop Corp and sudden trading curbs on smaller, retail investors spurred concerns about consumer protections.
The SEC is investigating for signs of fraud, while key US House of Representative and Senate committees are planning hearings.
The SEC and the US Commodity Futures Trading Commission (CFTC) are also “reviewing whether trading practices are consistent with investor protection and fair and efficient markets,” the department said on Thursday.
The gathering brought together the heads of the Treasury, the Federal Reserve, the SEC, the CFTC and the Federal Reserve Bank of New York, which serves as the central bank’s main monitor of Wall Street.
Yellen “believes it is imperative to uphold the integrity of these markets and ensure investor protection,” the department said.
The meeting gave the administration of US President Joe Biden a chance to demonstrate that itj is attuned to complaints about potential manipulation and unfair investor treatment after two congressional committees moved to hold hearings.
The controversy erupted late last month during a spectacular clash between retail investors and powerful hedge funds that pushed a handful of stocks, including GameStop, in opposite directions. That clash raised concerns over whether some investors were engaged in share-price manipulation.
However, the dust-up escalated when several broker-dealers were forced to post much higher collateral to cover the cash commitments behind massive buy orders in suddenly volatile shares.
That prompted Robinhood Markets Inc and other brokers catering to retail traders to suspend buying in certain shares, enraging customers and bringing accusations of unfair treatment.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
TECH SECURITY: The deal assures that ‘some of the most sought-after technology on the planet’ returns to the US, US Secretary of Commerce Gina Raimondo said The administration of US President Joe Biden finalized its CHIPS Act incentive awards for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), marking a major milestone for a program meant to bring semiconductor production back to US soil. TSMC would get US$6.6 billion in grants as part of the contract, the US Department of Commerce said in a statement yesterday. Though the amount was disclosed earlier this year as part of a preliminary agreement, the deal is now legally binding — making it the first major CHIPS Act award to reach this stage. The chipmaker, which is also taking up to US$5 billion
RSS