SIFMA says industry-wide circuit breakers work

The following is from SIFMA...

Washington, DC, September 28, 2011—SIFMA today released the following statement from Randy Snook, executive vice president, after FINRA and the exchanges released new proposed rules outlining the operation of market-wide circuit breakers, which have been in development over the past year in response to the May 6, 2010 Flash Crash.

“Ensuring markets function efficiently and effectively is the foundation of maintaining and enhancing investor confidence in our markets. Since the events of the Flash Crash, the industry, regulators and the exchanges have worked cohesively in finding solutions that will strengthen underlying market structure without undermining efficiency or liquidity.

“Today’s newest proposals from regulators and the exchanges are a further step in the right direction toward strengthening our markets and modernizing the rules that govern them. Updating system-wide circuit breakers to work more appropriately in today’s trading environment is critical, as none of them were triggered by the events of May 6. While we still need to review these proposals further, we generally believe they make necessary changes that reflect the current market environment and look forward to seeing them implemented as soon as possible.

“We’ll continue to work with regulators and the exchanges to refine these proposals, to ensure these market-wide rules interact seamlessly with single-stock rules, and to also ensure that these modifications are coordinated between the securities and futures markets.”

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