SEC Wants to Keep Tabs on Social Media Posts That Could Move Markets
The Securities and Exchange Commission has announced its solicitation of a commercial monitoring tool (for under $27.5 million) to enable it to track posts that could have impacts on financial markets. Such a tool would flag posts for review by the relevant SEC staff. One recent example of social media’s direct connection to markets is Elon Musk’s tweet regarding intentions to return Tesla to private ownership. The tweet had wide reaching effects on markets and has reportedly resulted in an SEC investigation.