More Intraday Margin Calls Loom in SEC Meme Stock Response (1)

A plan from the US Securities and Exchange Commission gives clearing firms new powers to make intraday margin calls, the agency’s latest response to the wild meme stock trading of early 2021.

The SEC proposed the changes Wednesday as part of new strictures for clearinghouses, which are supposed to ensure trades go smoothly between buyers and sellers in the market. Under the plan, the firms would also have to bolster their wind down and recovery plans.

Although clearinghouses generally play a behind-the-scenes role in US markets, they surged to prominence in early 2021 when meme stocks like GameStop Corp. rose ...