Complinet logo
Search
Contact us

U.S. Senate panel to hold hearing on automated trading

Dec 12 2012 Sarah N. Lynch, Reuters

A U.S. Senate banking subcommittee will hold a hearing next Tuesday to examine whether regulators should impose new rules to protect markets from glitches in a world of high-speed computerized trading. The event will mark the latest hearing on the issue to be called by Rhode Island Democrat Jack Reed, who chairs the Senate Banking subcommittee on securities. Reed pledged in September to take a closer look at the safety and soundness of the equity markets following a string of high-profile technology errors, including Nasdaq's botched handling of the Facebook IPO and Knight Capital's $440 million in losses due to a software error. Those events, he said at the time, raise serious questions about whether regulations have kept pace with changing technology in the marketplace. The Securities and Exchange Commission is also in the process of reviewing potential new regulations, such as a "kill switch" mechanism that can shut off access to the market before a glitch can have a ripple

Already have an account?

Log in

Want to read this article?

Click here for a free 14 day trial