Two Years After Flash Crash, SEC Still Pursuing New Safeguards
It's been two years since the so-called flash crash, and the Securities and Exchange Commission is still pushing hard for new rules to prevent extreme price moves and excessive volatility.
By Michael Peltz
This weekend marks the two-year anniversary of the aptly named flash crash. On May 6, 2010, starting at 2:42 in the afternoon, the Dow Jones Industrial Average plummeted nearly 600 points in just five minutes, only to recover most of that loss two minutes later. A few large U.S. companies witnessed their stocks trading for as little as a penny a share before snapping back to near where they had been trading when the day began. What would be the second-biggest trading day for U.S. equity markets 19.3 billion shares crossed the tape left investors, regulators and most journalists scratching their heads.