The gamification of financial investments

C. Brescia Morra, D. Colonnello, M. Gargantini, G. Sandrelli, G. Trovatore

Quaderno giuridico (Legal Research Paper) No. 22 - January 2025 [PDF]
 

Abstract
The study examines the phenomenon of ‘gamification’, defined as the application of game-like techniques in non-gaming contexts. The direct access of retail investors to financial markets via digital platforms and the widespread circulation of information on social media are posing new challenges for both regulators and supervisory authorities: gamification is significantly transforming investors’ behaviour, particularly that of retail investors, introducing major risks related to volatility and impulsive decision-making.
To fully grasp the implications of gamification in financial investments, key cases – such as GameStop and Robinhood – are analyzed, exploring their regulatory implications and existing regulatory gaps. Furthermore, pressing issues – such as the role of digital platforms, social media, and fin-influencers in shaping investors’ decisions – are discussed, along with an analysis of the inherent risks of copy trading and PFOF.
The surge in GameStop’s share price between May and June 2024 highlights the ongoing influence of social dynamics and underscores the importance of providing reliable information to ensure market efficiency and investor protection.
To enhance the protection of retail investors, this research papers proposes several updates to the regulatory framework.  
 

Authors:
Concetta Brescia Morra  - Università degli Studi Roma Tre (concetta.bresciamorra@uniroma3.it)
Dario Colonnello  - CONSOB, Divisione Studi e Regolamentazione (d.colonnello@consob.it)
Matteo Gargantini  - Università degli Studi di Genova (matteo.gargantini@edu.unige.it)
Giulio Sandrelli  - Università degli Studi di Brescia (giulio.sandrelli@unibs.it)
Gianfranco Trovatore - CONSOB, Divisione Studi e Regolamentazione (g.trovatore@consob.it)

The views expressed in this Quaderno Giuridico are solely those of the authors and do not represent the official position of CONSOB, nor do they in any way bind the Authority. When citing the contents of this Quaderno Giuridico, it is therefore inappro-priate to attribute them to Consob or its Board. Any errors or inaccuracies are the sole responsibility of the authors. This Quaderno Giuridico is a translation of the original Italian text. 

ISSN 2281-5236 [online]