The Securities and Exchange Commission (SEC) (SEC) said on Monday that it is closely monitoring the recent frenzied trading of meme shares to ensure market stability.

"in view of the continued volatility of some stocks, SEC staff will continue to monitor the market to determine whether there are market disruptions, manipulative trading or other misconduct," a SEC spokesman said. "in addition, if violations of federal securities laws are found, we will take action to protect retail investors."

SEC's comments came as retail trading surged among a small number of speculative stocks, particularly AMC cinema, BlackBerry, Bed Bath & Beyond and GameStop.

AMC cinema rose 83% last week and has repeatedly become the most actively traded stock in the Nasdaq. After rising 160 per cent in May, the stock has soared more than 100 per cent so far this month, pushing its year-to-date gain to more than 2,500 per cent.

TD Ameritrade, the brokerage, has moved to raise margin requirements for AMC cinema and GameStop to 100 per cent.