Alert August 14, 2012

SEC to Host Market Technology Roundtable and Consider Rule Addressing Capacity and Reliability of Exchange Systems

The SEC announced it will host a roundtable entitled “Technology and Trading: Promoting Stability in Today’s Markets” on September 14 to gather systems experts and explore ways to improve the capacity and integrity of market infrastructure.  Following the trading anomalies generated by a large electronic trading platform on August 1, SEC Chairman Mary Schapiro said that while recently adopted circuit breakers and clearly defined rules guided the exchanges and markets through the volatility that resulted, she was urging the SEC staff to accelerate ongoing efforts to propose a rule that would require exchanges and other market centers to establish specific programs to ensure the capacity and reliability of their technological systems.