Reuters: Regulatory News: UPDATE 1-US SEC announces agenda for roundtable on tech glitches

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-US SEC announces agenda for roundtable on tech glitches Aug 29th 2012, 20:37 Wed Aug 29, 2012 4:37pm EDT WASHINGTON Aug 29 (Reuters) - U.S. securities regulators released on Wednesday an agenda for a roundtable to discuss ways to promote market stability after recent technology glitches depleted investor confidence. The U.S. Securities and Exchange Commission said it planned to focus at a Sept. 14 roundtable on how "appropriate controls" for implementing technology could support a reliable market. The roundtable will include a panel on preventing errors and another on responding to errors, the SEC said. SEC Chairman Mary Schapiro announced plans for the roundtable earlier this month after a software error left Knight Capital Group with $440 million in trading losses. The error occurred when Knight brought a new computerized trading program online and the program malfunctioned, causing errant trades in roughly 150 stocks and leaving the firm with holdings it then had to offload at a discount. The brokerage was nearly forced out of business until it managed to secure a $400 million bailout from a group of independent investors in exchange for a 73 percent stake. The SEC is examining Knight to see whether it was complying with an existing "market access" rule requiring broker-dealers to create risk management controls to prevent problems such as unintended trader orders. [ID:nL2E8J27QE} The roundtable's goal will be to determine whether new rules are needed to govern the use of technology in the market. "As recent market events caused by technology-related issues have shown, such disruptions can erode investor confidence and can impact the stability and price-discovery function of the markets," the SEC said in statement. "The premise of this discussion is that regardless of how market structure evolves in the future, technology will continue to play a central role in the markets and present both opportunities and risks for market participants," it said. The SEC said it would finalize a list of participants and announce it at a later date. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions