MENU

Nasdaq breakdown puts pressure on crisis work

August 23, 2013 • Business


A television displays news about the Nasdaq on the Nasdaq building in New York, Thursday, Aug. 22, 2013. Nasdaq halted trading Thursday because of a technical problem, the latest glitch to affect the stock market. (AP Photo/Seth Wenig)

WASHINGTON (AP) — The latest high-tech disruption in the financial markets increases the pressure on Nasdaq and other electronic exchanges to take steps to avoid future breakdowns and manage them better if they do occur.

The three-hour trading outage on the Nasdaq stock exchange Thursday also can be expected to trigger new rounds of regulatory scrutiny on computer-driven trading. Investors’ shaky confidence in the markets also took another hit.

The exchange returned to a normal trading day Friday, with the Nasdaq composite rising 19 points, or 0.5 percent, to 3,657.

Thursday’s outage though “puts a lot more wind in the sails” of regulators’ actions, said James Cox, a Duke University law professor and expert on the Securities and Exchange Commission.

The SEC plans to finalize rules that would put stricter oversight on exchanges, requiring them to routinely test their trading systems, for example. And the Commodity Futures Trading Commission is moving toward reining in high-speed trading.

For Nasdaq, the apparent system failure brings “a Login to read more

Related Posts

Comments are closed.

« »