Gensler Targets Broker ‘Gamification’ After Trading Tumult
- Biden’s SEC pick also pledges to review payment for order flow
- Recent market volatility will continue to be a focus for SEC
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Gary Gensler pledged to scrutinize trading apps that have exploded in popularity, signaling the Biden administration’s pick to lead the U.S. Securities and Exchange Commission plans to confront issues central to wild stock swings that have shocked Wall Street and Capitol Hill.
Gensler, testifying during a Tuesday confirmation hearing before the Senate Banking Committee, said a top concern is that upstart technologies are prompting less sophisticated investors to take risks that they don’t fully understand. Without naming Robinhood Markets, his comments seemed squarely aimed at the Silicon Valley brokerage that has brought a legion of new traders to the stock market.