The failure that affected Nasdaq’s system for reporting quotes and trades bolsters the regulator’s case for the proposal issued in March, White said in a statement yesterday. Stock and options exchanges have pushed the
“I will work to advance rules that the commission proposed earlier this year regarding new standards for the trading and other systems that are central to the integrity of our markets,” White said.
White, who told
In a statement issued yesterday, Nasdaq said the failure stemmed from “a connectivity issue between an exchange participant” and the system for disseminating quotes and prices, known as a securities information processor.
The SEC’s proposal, Regulation SCI, would require self- regulatory organizations such as exchanges, clearing firms, and networks that provide quotation and trade data to adopt policies to prevent failures, stress test their systems, and report disruptions to regulators. The rules would create standards that could be enforced with fines and sanctions.
Regulation SCI was in part a response to the automated trading errors that nearly bankrupted trading firm
<p class=”indent”> “Reg SCI basically gives the
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