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Will halt trading if unusual activity in stock matches social media chatter: Nasdaq CEO

The Nasdaq CEO has said the company has the technology to evaluate social media chatter.

January 28, 2021 / 09:12 AM IST
(Reuters)

(Reuters)

Nasdaq Chief Executive Officer (CEO) Adena Friedman said on January 27 that the US exchange would halt trading in a stock if they matched unusual activity with social media chatter.

Friedman's comments came after a sharp rally in two stocks listed on the New York Stock Exchange (NYSE) - video game retailer GameStop and Movie theater chain AMC Entertainment.

Speaking to CNBC, she said Nasdaq had the technology to evaluate social media chatter.

"If we see a significant rise in the chatter on social media channels...and we also match that up against unusual trading activity, we will potentially halt that stock to allow ourselves to investigate the situation, to engage with the company, and give investors a chance to recalibrate their positions," Friedman told the news channel.