Summary Box: New marketwide system for tracking orders proposed to better probe disruptions
By APThursday, May 27, 2010
Summary Box:: Uniform ‘audit trail’ proposed
A NEW SYSTEM FOR TRACKING ORDERS: Federal regulators are moving toward requiring a uniform system for tracking all securities orders on U.S. exchanges. The aim is to make it easier to monitor trading and investigate market disruptions like the May 6 “flash crash.”
THE PROBLEM: Requirements for keeping “audit trails” vary among exchanges and markets, making it hard for regulators to get their hands on current order data.
NOT RIGHT AWAY: Under the proposal by the Securities and Exchange Commission, the new marketwide system would be phased in and wouldn’t be fully operational until about three years from now.
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