The delicate balance between investor protections and restrictions (Kiplinger)

The surge of online trading during the pandemic coupled with events earlier this year surrounding GameStop have posed a challenging situation for regulators. Now being studied by the SEC and other regulators, they are seeking to determine whether new rules should be proposed to curb speculative trading, dampen volatility and increase disclosures as further protections for investors. But to do so may inhibit the small investor’s ability to participate in the market and compete with larger players, which has gained traction through access to online trading apps and social media platforms, as detailed in the Kiplinger article. Amy Lynch, FrontLine’s Founder and President, sums it up by commenting that the regulatory focus from the top is to maintain market integrity and fairness, and to prevent a break down in confidence of the whole market. With this in mind, it’s to be seen if the regulators will find an appropriate approach that works. See Kiplinger, “Meet the Stock Market’s New Investors”