Online trading apps with game-like features are getting increased scrutiny from the U.S.’s top brokerage watchdog, adding to regulatory headaches for Robinhood Markets and other firms that played key roles in last month’s frenzied buying of GameStop Corp. Detractors argue that the nudges incorporated into apps inappropriately encourage customers to keep trading and may straddle the line of providing stock recommendations, which would subject firms to tighter rules. The DTCC is charged with overseeing the plumbing of stock trading. Whether firms need to improve or create systems to supervise “game-like" communications with customers. Whether firms are appropriately supervising customers’ options trading and the opening of new accounts.

Source: Mint February 06, 2021 00:33 UTC