SEC says flash crash report will bring confidence

NEW YORK (Reuters) - The upcoming flash crash report will show that regulators have a “very deep understanding” of the marketplace, giving the public a measure of confidence, the head of the U.S. Securities and Exchange Commission said on Monday.

“It will paint a very clear picture of how the markets operated on that day,” SEC Chairman Mary Schapiro said in an interview, adding she expects regulators will issue the report “in the next several days.”

The May 6 crash knocked some 700 points off the Dow Jones industrial average before it sharply rebounded, all in about 20 minutes. No full explanation of the unprecedented breakdown has yet been given, stirring concerns among investors about the stability of the high-speed electronic marketplace.

“I think they will feel confident, and they’ll feel confident that the SEC and the CFTC staffs have a very deep understanding of the markets as a result of this inquiry, and that we have some ideas on how to go forward,” Schapiro said in the interview with Reuters Insider.

The SEC and the Commodity Futures Trading Commission will jointly issue the report. Schapiro said she still hopes to issue it this month.

Reporting by Jonathan Spicer, Editing by Leslie Gevirtz and Carol Bishopric