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ASX Algorithmic Trading Review highlighted the risk of a May 6 event

I was just reading the Australian Securities Exchange review of 'Algorithmic Trading and Market Access Arrangements' (here), which was published in February this year.

Interestingly, someone has clearly thought about the possibilities of a May 6 event occurring. Since they note that in an multi-platform market there may well be a difficulty in coordinating any circuit breakers across all the relevant venues. Indeed they comment that if such coordination was not achieved - then the intended outcome of the halt/auction/break may well be undermined, since trading will undoubtedly shift to other venues.

Sound familiar ??

They also point out that it may be difficult to distinguish between genuine price movements caused by news/information, and a price cascade caused by an error. Though I suppose - in either case some sort of trading halt would at least give the market time to stop, gather its thoughts and then react more calmly.