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NYSE exec says exchanges moving closer to 'kill switch'

Dec 19 2012 Sarah N. Lynch, Reuters

U.S. regulators and exchanges are getting closer to a framework for a "kill switch" that could be used to shut down trading before software glitches get out of control and wreak havoc on markets, a top exchange official said on Tuesday. "We have all engaged in a much more detailed assessment of how a kill switch could work," Joe Mecane, an executive vice president at the New York Stock Exchange, said in testimony before a U.S. Senate Banking panel hearing on Tuesday. "I think we are hopeful to have something to report in the first quarter of next year," he said. Exchanges, brokerages and the U.S. Securities and Exchange Commission have been trying to come up with the right regulatory response after a series of high-profile glitches this year shook markets, from Nasdaq's botched handling of the Facebook initial public offering to Knight Capital's $440 million in losses due to a software error. The kill switch idea is one of at least a dozen market structure

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