"Given the issues with Knight arising from coding to the NYSE's new RLP program and the BATS withdrawn IPO in its first attempted company listing, the SEC is going to be particularly focused on coding associated with the introduction of new functionality," Gawronski said. "That could mean not only attempting to establish best practices around testing and better ways to respond and coordinate among market participants when market disruptions inevitably still happen, but even an attempt for the SEC to hold brokers and exchanges accountable through officer or other forms of certification."Perhaps the market could hold brokers and exchanges accountable by having them go out of business when they screw up badly. That might give the officers some incentive to make sure that bad software isn't released. Of course, that might require a large change in market structure and market speed, but perhaps both of those would be good. I think not too many erroneous trades went through when the specialists and their clerks were pushing buttons on the floor of the NYSE, eh?
Thursday, August 16, 2012
In relation to the recent problems on the NYSE and whatnot: