Former SEC Chair Jay Clayton says regulators would scrutinize trading ahead of Trump post
CNBC • • business
Key Points:
- Jay Clayton, former SEC chair and current U.S. attorney for the Southern District of New York, indicated regulators will likely investigate the unusual surge in futures trading minutes before President Trump's market-moving social media announcement about U.S.-Iran talks and halted strikes.
- Clayton emphasized that authorities will reconstruct the trading activity and identify all market participants involved, highlighting that regulators have the most detailed surveillance capabilities in cash equities markets, while futures and commodities markets are harder to monitor comprehensively.
- The trading spike occurred around 6:50 a.m. New York time, about 15 minutes before Trump's tweet, which subsequently influenced equity markets and oil prices.
- Clayton called for clearer legislation from Congress to address such situations, noting current laws are ambiguous and some market participants consider this type of trading activity acceptable, a stance he disagrees with.
- The SEC declined to comment on the matter.
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