More on the SEC-CFTC flash crash recommendations. In short, they’ll force platforms that do not publicly display price quotes to execute orders better than the midpoint, or otherwise route them out. This would kill the business model for many registered ATS’s. The goal of greater transparency is good – but the unintended consequences are huge. […]
Tag: flash crash
Flash Crash Panel: Market Remains 'Fragile' (TheStreet.com)
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. […]
Flash Crash spotlights financial IT risks (Institution of Engineering and Technology)
The Flash Crash may very well be talked about more these days than the credit crisis. Not only is it an area of interest for regulators and traders but technologists as well. IET takes a look at the issue from a technology perspective in this article. ‘It seems to be more of a market structure […]