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We think it's pretty clear after last Thursday, that there needs to be uniform standards regarding circuit breakers, stock halts and the procedure for cancelling trades. The lack of consistency amongst exchanges regarding these policies does suggest that a regulator needs to provide clear, concise, and consistent guidelines. Traders and investors need rules that are clear and consistent in order to allocate capital and make decisions. We support the exchanges and regulators working together to come up with the appropriate solution.
While technological improvements in the equity markets have lowered costs, increased efficiencies, and improved liquidity, the speed at which the market now functions mandates that proper safeguards are in place to prevent scenarios such as last Thursday. Most importantly, the goal should always be to protect investors and investor confidence.
