A solution that does nothing to address the problem while reinforcing the notion that prices aren’t based on value but rather the result of automated trading programs. But we knew that. – Ilene
The SEC Takes on the Robots
Courtesy of Jr. Deputy Accountant
Again, it’s good to have a "just in case" or twenty readily available, right?
The U.S. Securities and Exchange Commission’s plan to impose halts on some stocks that swing more than 10 percent starting today may be followed by more measures to slow down trading.
The circuit-breaker test, a response to the May 6 plunge that wiped out $862 million of share value in 20 minutes, will begin as a pilot covering five stocks before expanding next week. SEC Chairman Mary Schapiro said yesterday the agency is considering regulating the speed of stock orders as part of a broader effort to rein in electronic markets.
Call me crazy but aren’t we trying to seduce money into our exchanges and not scare the pants off of it? Note to the SEC: This sort of sh*t scares the money. You’ve been warned.
