Based on a preliminary review, the SEC and the Commodity Futures Trading Commission said they found no evidence of "fat finger" errors, computer hacking, or terrorist activity involved in the May 6 market drop.
Still, the agencies acknowledged "we cannot completely rule out these possibilities" in a joint report released May 18. Going forward, the agencies said they will come up with a structural framework that aims to strengthen circuit breakers and handle erroneous trades.
The regulators are looking at six possible reasons for the drops including if there was a link between the decline in the prices of exchange traded funds and the simultaneous selling of individual securities.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
- Educational webcasts, white papers, and ebooks from industry thought leaders.
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
