Flash Crash Panel: Market Remains 'Fragile' (TheStreet.com)

By | February 22, 2011

The CFTC and the SEC somehow found time in the midst of writing derivatives reform regulation to make recommendations on how to prevent another flash crash.  I don’t think anything in here was too surprising, although I do think that they’re banning too many things rather than creating rules that incent a change in behavior.

Kevin McPartland, a senior analyst with capital markets advisory firm TABB Group, has some concerns about the panel’s approach.

“They want to ban a lot of practices. If they ban a practice, the market will likely find another way to do what they need to do. It would make much more sense to try to create a market structure that incents certain behavior,” he says.

Read the full story at TheStreet.com

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