Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD FUTURES

    2,254.80
    +42.10 (+1.90%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    56,151.99
    +1,362.51 (+2.49%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

U.S. state regulator says GameStop trading could be 'systemically wrong': Barron's

The GameStop store sign is seen at its shop in Westminster

(Reuters) - Top securities regulator in Massachusetts thinks trading in GameStop Corp stock, which skyrocketed for a fourth straight day, suggests there is something "systemically wrong" with the options trading surrounding the stock, Barron's reported https://bit.ly/3iRbdRB on Tuesday.

The video game retailer's after-hours surge added to a 93% jump during Tuesday's trading session, with the company's stock propelled by traders on Wallstreetbets, many of them buying volatile call options.

"This is certainly on my radar," William Galvin, secretary of the Commonwealth of Massachusetts, told the magazine. "I'm concerned because it suggests that there is something systemically wrong with the options trading on this stock."

GameStop and the office of the securities regulator in Massachusetts did not immediately respond to Reuters' request for comment outside business hours.

ADVERTISEMENT

The stock surged 50% in extended trade after Musk tweeted "Gamestonk!!", along with a link to Reddit's Wallstreetbets stock trading discussion group. "Stonks" is a tongue-in-cheek term for stocks widely used on social media.

GameStop has surged more than seven-fold to $147.98 from $19 since Jan. 12, spurring concerns over bubbles in stocks that hedge funds and other speculative players bet will fall in value.

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Arun Koyyur)