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SEC Chair to Advance Proposal for New Standards on Trading

After yesterday’s Nasdaq trading outage, the SEC Chair Mary Jo White released a statement saying that she plans to move forward on an SEC rule proposal regarding new standards and rules related to trading and other systems critical to the financial market.

On August 22, a technical glitch halted all trading in the Nasdaq Stock Market for three hours. Nasdaq blamed the malfunction on trouble with the software that manages the price quotes for each stock in real time. According to the Wall Street Journal (subscription required), while the technical issues were resolved in 30 minutes, Nasdaq said the rest of the time was spent coordinating with other exchanges and regulators to ensure that trading would go smoothly when it resumed.

Chair White’s statement reinforced the importance of “continuous and orderly function of the securities markets” to the well-being of the US financial system and investors.  She also pledged to convene a “meeting of the leaders of exchanges and other major market participants to accelerate ongoing efforts to further strengthen our markets.”