U.S. SEC charges individuals in 'meme stock' options trading scheme

The securities regulator said it has charged a Florida resident and his friend who used wash trading put options to collect liquidity rebates

  
Traders pause during a moment of silence during the commemoration of the 20th anniversary of the September 11, 2001 attacks, on the floor at the New York Stock Exchange, in New York City, U.S., September 10, 2021.

Traders pause during a moment of silence during the commemoration of the 20th anniversary of the September 11, 2001 attacks, on the floor at the New York Stock Exchange, in New York City, U.S., September 10, 2021.

REUTERS/Brendan McDermid

WASHINGTO The U.S. Securities and Exchange Commission on Monday charged two individuals for a fraudulent trading scheme involving so-called "meme stocks" in early 2021.

The securities regulator said it has charged a Florida resident and his friend who used wash trading put options to collect liquidity rebates, seeking to take advantage of the increased market volume and volatility driven stocks that were being actively promoted on social media platforms.

Attorneys for the individuals did not respond immediately to request for comment.

(Reporting by Chris Prentice and Katanga Johnson) ((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;))


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