The credit crisis, which peaked in 2008, produced an economic downturn unseen since the Great Depression. Whether looking at the housing bust, too big to fail institutions or the recent “flash crash,” there has been a clarion call for reform.
Since the initial introduction of the single stock circuit breakers on June 10 by the Securities and Exchange Commission (SEC) in response to the May 6 flash crash, three stocks have been paused under the new rules.
With regulatory reform on its way to passage in the United States, Europe has now offered various ideas to reform its financial system. However, much of the regulatory reform proposals in Europe at this stage are just that: proposals.