US regulators working on rules for exchanges' automated systems
WASHINGTON Feb 19 (Reuters) - Exchanges and other trading platforms would have to perform tests to help prevent software errors from unleashing havoc on the market under proposed rules regulators are crafting, U.S. Securities and Exchange Commission Chairman Elisse Walter said.
Walter said in a speech at American University on Tuesday that the new rules likely would require the core technology of exchanges, clearing agencies and significant alternative trading systems to meet standards.
The platforms also would have to provide notifications about systems disruptions, she said.
Policymakers have been taking a closer look at the safety and soundness of the equity markets following a string of high-profile technology errors, including Nasdaq OMX Group Inc's botched handling of the Facebook Inc IPO and Knight Capital Group Inc's $440 million in losses due to a software error.