WASHINGTON (Reuters)-the head of the U.S. Commodity Futures Trading Commission on Monday called on a buffer array to consider making recommendations about the price and volume to achieve and distribution.
Gary Gensler, Chairman of the CFTC, said a Committee of experts to advise the Securities and Exchange Commission and the CFTC must consider new obligations for brokers to avoid distribution from clients that could disrupt the market--as a great series on 6 may, which helped to spark the stock market crash Flash.
"A key lesson is that, under stressed market conditions, the interaction between the automated execution of a command large sell and trading algorithms quickly erode liquidity and disorderly markets, particularly if the algorithms use volume proxy liquidity," Gensler said in remarks prepared for a Conference on installations running Exchange (swap).
"The events of May 6 shows that, in volatile markets, high trading volume is not necessarily a reliable indicator of liquidity of the market," said Gensler.
The CFTC and SEC on Friday said a sale driven by the computer is worth 4.1 billion dollars from a single trader has helped trigger the preliminary crash, sending the Dow Jones industrial average plunging around 700 units in minutes.
The report did not name the trader may be determined by Reuters as managing money Waddell & Reed Financial Inc.
In his speech, Gensler said was the series of transactions that helped spark Flash crash "in the" auto-pilot.
Gensler said regulators experience with preliminary crash will help inform them as write detailed arrangements for the application of the law reform Wall Street.
He said that the Conference of the CFTC estimates approximately 30-40 companies will post transactions swaps or swap Exchange installations (SEFs) or exchanges.
The CFTC and SEC you intend to present proposed rules for SEFs by the end of the year.(Additional reporting by Jonathan Spicer; editing by Alden Bentley)
No comments:
Post a Comment