U.S. SEC to meet exchange heads September 12 over Nasdaq outage

WASHINGTON Tue Aug 27, 2013 12:57pm EDT

SEC Chair Mary Jo White testifies at a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill July 30, 2013. REUTERS/Jose Luis Magana

SEC Chair Mary Jo White testifies at a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill July 30, 2013.

Credit: Reuters/Jose Luis Magana

WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission will meet with heads of the major exchanges on September 12 to discuss last week's Nasdaq trading outage, the regulator said on Tuesday.

The meeting with SEC Chairwoman Mary Jo White would address "the market dissemination system involved in last week's halt, as well as other critical market systems and infrastructure issues," the SEC said.

Nasdaq halted trading in the thousands of stocks listed on its platforms last Thursday, including such familiar names such as Apple Inc, Facebook Inc, Google Inc and Microsoft.

It had done so after learning that a system that consolidates stock prices coming in from different trading platforms, known as the Securities Information Processor, was not disseminating price quotations.

The SEC has asked Nasdaq and NYSE Euronext to come up with a timeline of the three-hour debacle, but the rivals have been unable to agree on the details, Reuters reported on Monday.

The outage is part of a series of high-profile trading glitches. On Monday, exchange operator Deutsche Boerse halted trading on its derivatives platform Eurex for an hour after technical problems.

Also last week, a technical problem at Goldman Sachs resulted in a flood of erroneous orders in U.S. equity options markets. And on August 6, BATS Global Markets faced an outage that lasted nearly an hour.

It was also another black eye for Nasdaq, which in May agreed to pay $10 million to settle SEC charges over its mishandling of the flotation of Facebook.

White has pledged to move ahead aggressively with proposed reforms that would hold exchanges, clearing agencies and certain "dark pool" trading venues more accountable for preventing outages and other technical problems.

(Reporting by Douwe Miedema; Editing by Karey Van Hall, Gerald E. McCormick and Leslie Gevirtz)

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Comments (1)
sylvan wrote:
Anything or anyone called a “dark pool” does not belong in legitimate markets, if there is such a thing on Wall Street. Mary Jo White has been much more aggressive than I had feared. I honestly believe some of these trading disruptions are simply price manipulations by stopping market runs. Get rid of the stupid rapid trading and let the markets function even for those without massive computer systems trading hundreds and thousands of times.

Aug 27, 2013 1:55pm EDT  --  Report as abuse
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