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The Securities Industry and Financial Markets Association (SIFMA) today released the following statement from Randy Snook, executive vice president for business policy and practices on the exchanges’ proposed rules for single-stock circuit breakers in response to the market disruptions of May 6.
“The events of May 6 were of great concern to all market participants. We appreciate the work the SEC is doing to determine the causes of the disruption and what changes may be needed to ensure investor confidence. We also appreciate that the exchanges have worked together with FINRA on developing these new proposed circuit breaker rules, which the SEC is seeking comment on. We look forward to reviewing the proposed rules and commenting on them. We also appreciate that the SEC and exchanges contemplate that these circuit breakers will be implemented on a pilot basis. This pilot period will afford all market participants – the SEC, exchanges, broker-dealers and others – an opportunity to study the impact of the new rules and fine-tune them as necessary to ensure that the best regulatory solution specifically addressing the causes of this recent disruption is adopted. We are committed to assisting regulators, exchanges and investors in the development of policies and rules that work to prevent extreme volatility in our markets in the future but which do not have unintended, adverse consequences to our markets or investors.”
