WASHINGTON – The nation's top financial markets regulators say they will look into whether recent stock market turbulence is an indication that current trading practices are not doing enough to protect investors.
The Treasury Department said Thursday that regulators believe the core infrastructure of the markets has proved to be “resilient during high volatility and heavy trading volume.” But it said regulators also believe the Securities and Exchange Commission should investigate what happened during the recent market upheaval that pitted smaller, online investors against massive hedge funds.
The department issued the statement after a meeting of regulators convened by Treasury Secretary Janet Yellen. The market battle, led by traders