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SEC Proposes New Rules to Monitor Short Squeezes Like GameStop
The Securities and Exchange Commission proposed new rules Friday that would expand reporting of short sale positions. The agency said it aims to gain better insight into market conditions like the January 2021 short squeezes that convulsed the prices of meme stocks like GameStop and Koss.
The agency’s proposals seem intended to balance the interests of investors who bet against a stock’s price by selling short and critics of the practice. Under the proposed rules, money managers would confidentially report to the SEC any short…