Home News SEC draws a consequence from Dow’s dramatic crash

SEC draws a consequence from Dow’s dramatic crash


Die Börsenaufsicht SEC hat neue Regeln für die amerikanischen Börsen beschlossen. Quelle: ap

The SEC has adopted new rules for the American stock exchanges. Source: AP

HB NEW YORK. Under those rules, trading of shares from the index S & P 500 is interrupted for five minutes if the course within five minutes to ten percent or more falls or rises. Such breaks give the markets the opportunity to attract new buyers or sellers to set a "reasonable" market price and the trade in a fair and orderly manner "continue, according to a communication from the SEC.

It is still not resolved conclusively what caused the dramatic price fall of the Dow Jones by early May. The U.S. stock market regulators SEC and CFTC, however, declared in a first reaction to the ongoing investigation, that no specific single factor in the "flash crash" had been responsible. And although there was no evidence of hacker or terrorist activities, currently can not be completely excluded. "There are still investigating a large amount of data," said CFTC Chief Gary Gensler.

The automatic shut-off under the new rules should for the time being until a pilot program 10 Be tested in December, after authorities and stock exchanges to decide whether the rules should be adapted and extended to yet more shares. The SEC is now available to all interested parties ten days to review the action and comment – then launches the pilot phase.

"We continue to believe that the currency crash of different and conflicting rules of various exchanges has been tightened," said Mary Schapiro, head of SEC. "It is therefore important that all stock exchanges have agreed quickly to incorporate generally applicable thresholds that activate if necessary." She was convinced that the rules are now provided significantly reduce market volatility, said Shapiro. There is also still considering a number of other measures.

According to previous findings, the shares have on the order of 200 company during the "flash crash" 6 May lost almost all their value. In many cases, they were just traded for a penny. Small company stocks were affected disproportionately. Investigators have identified 11 510 transactions in which shares for less than ten percent of the current value were sold, a total of approximately 3.5 million shares were affected.

In some cases there were sharp price increases – shares whose value is in seconds more than doubled, only to fall behind again shortly afterwards at the original value.