Tags: US | Market | Plunge | Investigation

NYSE Exec: Trading Data Should Be Centralized

Tuesday, 11 May 2010 01:46 PM

A key executive of the New York Stock Exchange said trading data should be kept in a central location to assist regulators investigating market swings.

NYSE chief operating officer Larry Leibowitz said officials would have an easier job investigating last week's historic market plunge if data were not scattered between dozens of private exchanges.

In testimony prepared for a Tuesday hearing of the House subcommittee that oversees markets, Leibowitz also called for market-wide "circuit breakers" that would stop trading of stocks during periods of high volatility.

Officials from NYSE, Nasdaq and other major exchanges are expected Tuesday to propose specific circuit breakers and other measures to curb market turbulence.

Leibowitz will appear on a panel with executives from the Nasdaq and the CME Group Inc., the largest exchange for futures and options.

An earlier panel will include testimony from Securities and Exchange Commission Chairman Mary Schapiro and Commodity Futures Trading Commission Chairman Gary Gensler.

Regulators and exchange executives have been meeting in Washington this week to hash out a new system to slow down or halt trading when the market swings wildly.

Separately, the SEC and CFTC announced Tuesday that they had formed a joint committee to report on Thursday's events.

The Dow Jones Industrial Average fell by nearly 1,000 points for a brief period Thursday afternoon. It recovered to close down 342 points.

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