Copyright 2010 SNL Financial LCAll Rights Reserved SNL Bank Weekly Western Edition
May 24, 2010
SEC, CTFC report potential liquidity failure in May 6 market plunge
The SEC and the Commodity Futures Trading Commission said the temporary decline in market prices during the May 6 plunge may suggest “a failure in liquidity,” according to a new report.
The staffs of the SEC and the CFTC said May 18 that the temporary decline in prices in the broader market during the May 6 plunge may suggest “a failure in liquidity,” according to a new report.
In its discussion, the SEC and CFTC reported that a temporary price dislocation could be caused by an unusually high demand for liquidity, an unusually weak supply of it, or by a combination of the two factors. They regulators said they currently believe both factors could be at play.
The commissions’ report also listed Radian Group Inc. as the No. 1 broken stock by trading volume during the entire day of May 6, with volume of 70,612,297 shares. Radian was listed below Apple Inc. as the No. 2 broken stock from 2 p.m. to 3 p.m., with 5,298,708 shares.
June 3, 2010