Mark Cuban weighs in on trading, criticizes SEC on GameStop hearing day
Robinhood CEO apologizes to customers
Robinhood Markets, Inc. CEO Vlad Tenev speaks during the House Committee on Financial Services hearing looking into the GameStop stock frenzy.
Billionaire Mark Cuban didn't participate in the GameStop hearing on Thursday but instead offered his own opinion via Twitter on the issues facing financial markets.
Cuban, responding to Interactive Brokers CEO Tom Peterffy, said the two days – or T+2 – that markets take to settle is too long, as traders are moving at lightning speed. He said Blockchain could be a possible solution.
THE NEXT GAMESTOP COULD BE ONE OF THESE STOCKS
|IBKR||INTERACTIVE BROKERS GROUP||74.56||+0.32||+0.43%|
Peterffy alleged during an interview that markets came close to collapsing last month at the height of the trading frenzy in the shares of GameStop and other heavily shorted companies.
Cuban's comments supported Robinhood Markets Inc. co-founder and CEO Vladimir Tenev, who recently complained the T+2 needs a major upgrade. Tenev reiterated his position during his testimony on Thursday.
ROBINHOOD CEO SAYS MARKETS NEED MAJOR UPGRADE
Cuban also said brokers like Robinhood need to be more transparent. If they were, customers who abruptly had trading in their favorite stocks restricted last month wouldn't have been caught off guard.
CHARLES SCHWAB CEO: WE DIDN'T RESTRICT STOCKS LIKE OTHERS AMID GAMESTOP FRENZY
Robinhood restricted a basket of heavily shorted stocks last month, jolting the retail trading community, which exploded with anger online. Barstool Sports founder Dave Portnoy reacted by saying "I will burn @RobinhoodApp to the ground if they shut down free market trading."
|AMC||AMC ENTERTAINMENT HOLDINGS INC||5.51||-0.04||-0.72%|
|BBBY||BED BATH & BEYOND INC.||26.29||-0.09||-0.34%|
He also fired a shot at the U.S. Securities and Exchange Commission, saying there's a chance the agency may punish some of these smaller traders when their investigations conclude. Enforcement at the SEC is done by an Office of Administrative Law Judges or ALJ's, which Cuban says isn't fair.
The SEC, on its website, says proceedings work like this:
"When the Commission orders that a proceeding be heard by an administrative law judge, the judge serves as an independent adjudicator who determines whether the allegations against one or more respondents are true. The judges conduct public hearings in a manner similar to federal bench trials at locations throughout the United States."
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