WASHINGTON Feb 19 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.