The increasing complexity of financial markets can leave them prone to flash crashes and system outages, as well as make them targets for cyberattacks.
New rules prescribe far-more-detailed pretrade risk analysis and real-time order surveillance across multiple asset classes and markets. The push for compliance could present opportunities for technology providers.
SEC’s Mary Schapiro carves out the single-stock circuit breaker response. “It’s an orderly, organized way to deal with this. We will add additional stocks after the pilot,” says Schapiro.
Money managers, brokers and traders are showing little resistance to regualtory measures to combat, mitigate and decipher any future “flash crash” event.
