SEC’s White Vows Technology Safeguards Following Nasdaq Failure – Bloomberg

U.S. Securities and Exchange Commission Chairman Mary Jo White said she would push to adopt proposed automated-trading rules after computer errors caused a three-hour halt on the Nasdaq Stock Market today.

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. Stock and options exchanges have pushed the SEC to limit the scope of the rule, including how much information about outages they have to provide to regulators.

“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.

The SEC’s proposal would require exchanges and other electronic trading venues to adopt policies to guard against technology disruptions and report outages to regulators. The rules would create an enforceable standard for trading systems that so far have been governed by a voluntary program.

White, who told Congress earlier this year that she would scrutinize market stability efforts, also said today she would “convene a meeting of the leaders of the exchanges and other major market participants to accelerate ongoing efforts to further strengthen our markets.”

To contact the reporter on this story: Dave Michaels in Washington at dmichaels5@bloomberg.net

To contact the editor responsible for this story: Maura Reynolds at mreynolds34@bloomberg.net


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