While brokerage platforms have lifted prior limits on trading of GameStop, AMC Entertainment and other shorted stocks, regulators are examining the fallout from recent events. This week, Treasury Secretary Janet Yellen met with the Securities and Exchange Commission, the Federal Reserve Board, the Federal Reserve Bank of New York, and the Commodity Futures Trading Commission to discuss the implications from the market volatility driven by the recent spike in retail trading.

Why should we care?
Regulators agreed that the core infrastructure of the trading system was “resilient” in wake of high volatility. They also acknowledged that the Securities and Exchange Commission should release a timely study of recent events. Oversight agencies are looking at the events from various vantage points, including brokerages’ moves to restrict trading and possible market manipulation coordinated by retail traders on social media. There is speculation that regulators may eventually clamp down on payment for order flow, a component of Robinhood’s business model that’s drawn heat lately amid accusations of a conflict of interest, but there’s no clear indication of any major changes to come. Meanwhile, Robinhood is working to repair its brand and endear itself to consumers through a Super Bowl ad. In it, the company emphasizes the “investing for all people” message it’s been known for, pushing the slogan “You don’t need to become an investor. You were born one.” Given the beating the brand has taken recently, that may be a hard sell.