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August 8, 2012
TO: EQUITY MARKETS ADVISORY COMMITTEE No. 16-12DERIVATIVES MARKETS ADVISORY COMMITTEE No. 41-12
ETF (EXCHANGE-TRADED FUNDS) COMMITTEE No. 27-12
ETF ADVISORY COMMITTEE No. 28-12
CLOSED-END INVESTMENT COMPANY MEMBERS No. 52-12
SEC RULES MEMBERS No. 74-12 RE: SEC TO HOST MARKET TECHNOLOGY ROUNDTABLE
The SEC has announced that it will host a technology roundtable on September 14 to discuss ways to promote stability in markets that rely on highly automated trading systems. According to the SEC’s release, [1] the roundtable, entitled “Technology and Trading: Promoting Stability in Today’s Markets,” will convene experts on designing, operating, and controlling the systems that form the core of the securities market’s infrastructure. Specifically, roundtable discussions will be focused on the design and control of all types of automated market systems.
The announcement of the roundtable follows from a previous statement by SEC Chairman Schapiro regarding the Knight Capital Group trading issue. [2] In addition to directing SEC staff to convene the roundtable to discuss further steps that can be taken to address the issues raised by the events surrounding Knight Capital, the statement notes that SEC staff have been asked to accelerate ongoing efforts to propose a rule to require exchanges and other market centers to have specific programs in place to ensure the capacity and integrity of their systems.
Ari Burstein
Senior Counsel - Securities Regulation