Did Reg NMS Cause The Glitch?

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It seems we may never get to the bottom of the glitches last week. Wall Street and the business media have short memories, and it seems everyone has more or less moved on. That's so last week's story. "It's starting to feel like beating a dead horse," one business journalist told us last Thursday, a mere two days after the so-called glitches may have contributed to an upsurge in market volatility and caused trading problems.
Overshadowing last weeks trading problems is the Web-of-Wall Street insider trading scandal, as well as It the latest big NYSE screw-up story. But maybe the failure of the NYSE to incorporate certain exchanges into the "best price" requirements for Reg NMS--the deadline was today--is connected to last week's glitches.
DealBreaker spoke with a former market regulator who said that it is possible that the problems with the electronic trading systems at the NYSE last week may have been caused by the attempt to comply with the requirements. NYSE John Thain has been very adamant that the NYSE's trading problems were not caused by the hybrid system but by the so-called SuperDot system which carries orders to the trading floor. The former market regulator we spoke with, who has since ceased his work for the self-regulatory organization where he gained his experience in exchange regulation, said that sounds like exactly the kind of problem the exchange might have experienced if it was testing the system that routes trading orders to different exchanges in search of the best price. This "best price" routing is what Reg NMS requires.
This could also explain why the NYSE had to request a last minute extension for the implementation of Reg NMS on Friday. After extending the deadline twice

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