What the GameStop saga revealed about US markets


The financial markets establishment massively underestimated the retail revolution in US stock markets.

For evidence, look no further than the 45-page myth-busting staff report issued this week by the Securities and Exchange Commission on January’s GameStop saga.

For those with short memories, this was one of those rare markets events that was chaotic and frankly fun enough to spill beyond the financial press.

TV, radio and the full range of non-specialist media were abuzz with the tale of an audacious assault by a plucky band of online warriors, who fired up the shares in a downtrodden US consoles retailer and claimed the scalps of bearish, too-clever-by-half hedge fund managers in the process. Then nerdy trading rules and blocked markets plumbing kicked in to stop them trading.

Depending who you believe, it was Occupy Wall St, it was David and Goliath, it was yet another example of the suits rigging the system against the little guy, or it was…

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