U.S. regulators required stock exchanges to show they can prevent technology disruptions under new rules intended to limit the frequency of malfunctions that have undermined investor confidence.
The Securities and Exchange Commission (SEC) voted unanimously today to approve rules that will cover the Nasdaq Stock Market, the New York Stock Exchange (NYSE), and venues operated by Bats Global Markets Inc., as well as dark pools including those owned by Credit Suisse Group AG and UBS AG. The SEC will separately consider expanding the rules to brokers, such as Citigroup Global Markets Inc. and Citadel Securities LLC, that fill orders themselves away from exchanges.
“We need to address any regulatory gaps that exist for market participants whose systems would have a significant market impact if they were disrupted,” SEC Chair Mary Jo White said at today's meeting.
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