REUTERS: SEC Talks on Nasdaq Failure to Focus on Backing up System

Securities and Exchange Commission

Securities and Exchange Commission

According to Reuters’ Herbert Lash and John McCrank, federal regulators and stock exchange executives are likely to focus on the stock quotes processor behind Nasdaq’s trading halt last month, but a quick resolution of system outages or market weak spots at the meeting on Thursday is unlikely.

Mary Jo White, chairwoman of the Securities and Exchange Commission, scheduled the meeting two weeks ago to address the “securities information processor” (SIP), whose malfunction shut down trading in Nasdaq stocks for three hours on August 22.

The outage was the latest of recent technological failures to hit the U.S. stock market. While none were related, they have raised questions about the system’s fragility and the risks they pose.

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