The CEOs of Robinhood, Citadel, Melvin Capital as well as Reddit will testify at a United States House Committee on Financial Services hearing within the week concerning issues around the recent frenzied trading of stocks like GameStop.
Later on 18th Feb., the virtual hearing is about to research how retail trading pushed the stock from trading below $20 USD at the starting from January to around $340 USD at the end of the month, consistent with a new York Post report on Saturday.
Additionally, Reddit’s online trading community r/WallStreetBets assisted pump share prices for GameStop as well as other firms within a bid to punish short-sellers.
Amid the surge, trading application Robinhood limited the power of traders to shop for GameStop as well as other stocks targeted by WallStreetBets.
Rep. Maxine Waters (D-Calif.), who will chair the hearing, added earlier “I am concerned about whether or not Robinhood restricted the trading because there was collusion between Robinhood and a few of the hedge funds that were involved within this.”
Hedge fund Citadel is appearing as its independent securities arm features an account with Robinhood, while Melvin Capital had to shut its GameStop short positions due to the price hike.
The hearing is going to be attended by Citadel CEO Ken Griffin, Robinhood CEO Vlad Tenev, Melvin Capital Management CEO Gabriel Plotkin, Reddit co-founder Steve Huffman & Reddit user Keith Gill.