Former SEC Chair Jay Clayton says regulators would scrutinize trading ahead of Trump post
Regulators to investigate trading before Trump's announcement.
Former SEC Chair Jay Clayton indicated that regulators will closely examine a notable spike in trading activity that occurred shortly before President Donald Trump announced U.S.-Iran talks and a halt to planned strikes. Clayton, now serving as the U.S. attorney for the Southern District of New York, highlighted that such pre-announcement trading raises red flags, prompting a thorough investigation to identify market participants and reconstruct the trading activity. He pointed out that while cash equities markets provide clearer surveillance data, futures and commodities markets present more challenges for regulators.
Key Takeaways
- 1.
Trading volume in S&P 500 and oil futures surged 15 minutes before Trump's announcement.
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Jay Clayton emphasized the need for clearer regulations regarding trading activity.
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Authorities will track all trading participants involved in the unusual activity.
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