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Market Structure News Digest

January 29, 2021

• A scrappy day-trader army turns the tables on Wall Street’s 1%, creating havoc in heavily shorted stocks like GameStop that has market participants, regulators and members of Congress taking notice

• A flurry of companies coming public through SPACs also raises investor-protection concerns

• LSE Group completes its takeover of data giant Refinitiv, cementing Euronext’s acquisition of Borsa Italiana

• Will a flurry of recent moves by financial firms, including Virtu Financial, away from Wall Street redefine the nature of work, recruiting, culture and competition in our industry?

• Ultimate Street insider-turned big-bank foil Gary Gensler is tapped to take the reins of the SEC

• Why a regulatory freeze President Biden issued on Inauguration Day may trip up a recently adopted SEC rule that would bring sweeping changes to US consolidated market-data plans

• The SEC allows companies to raise capital in direct listings for the first time, in a move that could spell death for traditional IPOs

• A massive cut in transaction fees that help fund the SEC budget could support 2021 volumes

• Hedge funds step up their use of financial technology to keep tabs on social-media-fueled day traders

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