Trading in unlisted US shares has dropped almost three-quarters from its peak at the height of last year’s retail trading frenzy, as investors rein in speculative bets and regulators crack down on potential fraud in penny stocks.
January marked the 11th consecutive monthly decline in volumes of “over-the-counter” equity trades, according to data from Finra, the watchdog for US broker-dealers and exchanges. The total number of trades was 70 per cent below the all-time high set last February.
Many of the riskiest areas of financial markets experienced a surge in activity at the height of the coronavirus pandemic, with amateur traders attracted by rebounding asset prices, government stimulus cheques and an escape from lockdown boredom.