The SEC has started a probe into how trading was handled on the first day of the direct listing of Slack Technologies Inc. and other companies' IPOs on the New York Stock Exchange, The Wall Street Journal reported Dec. 20, citing people familiar with the situation.
The regulator has sent letters to trading firms Citadel Securities LLC and GTS to hand over emails sent just before the stocks started trading, the sources told the Journal.
A Citadel spokesman told the Journal that the company is standing "firmly behind the integrity and transparency of the listing and pricing process on this important transaction."
A spokesman for the exchange, a unit of Intercontinental Exchange Inc., told the newspaper that the “NYSE places a premium on transparency, fair access and robust price discovery in helping companies access the public markets."
The exact target and scope of the probe is not clear and it may not lead to any allegations of wrongdoing, according to the Journal's story.
The SEC recently rejected plans from the New York Stock Exchange to broaden the universe of companies able to use a direct listing on its exchange.