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Friday, Aug 23
SEC to push for new exchange rules following Nasdaq outage
- SEC boss Mary Jo White said yesterday that she will push to implement proposed rules that will hold exchanges, clearing agencies and certain "dark pool" trading venues more accountable for preventing disruptions to trading. The rules would add testing requirements and safeguards for the software involved.
- White made the comments following the three-hour outage on the Nasdaq, which was caused by a technical problem. The company has reportedly identified "connectivity" issues with rival NYSE Arca (NYX) as a major factor.
- In the existing regulatory model, exchanges rely on voluntary guidance known as "Automation Review Policies" to maintain security and stability.