After Two Years, New Regulations Respond To 2010′s Flash Crash
by J. J. Kellington on June 1, 2012
It has been two years since the “flash crash”. If you recall, high frequency traders were blamed for causing a mini crash due to the frenetic trading. Regulators clearly do not move as quickly as high frequency traders, and after two years of reviews, investigations, posturing, blaming and losing interest here and there, it seems that we have some new regulatory developments.
New rules include a “limit up-limit down mechanism that prevents trades in individual stocks from occurring outside of a specified price band,” and an update to “existing market-wide circuit breakers that, when triggered, halt trading in all exchange-listed securities throughout the U.S. markets,” according to Compliance Week.
SEC Approves Exchange Proposal to Adjust U.S. Trading Curbs [Bloomberg]
SEC Marks ‘Flash Crash’ Anniversary With New Trade Halt Triggers [Compliance Week]
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