Two equity trading experts want regulators to require
volume-based surge protectors to guard against roller-coaster markets. It’s the best way to restore Main Street
confidence in Wall Street, they said.
“Investors tend to pull out of the markets [causing
liquidity to dry up] when they don’t believe the data that they are seeing,”
James Angel, a Georgetown University professor, told The Post.
Angel said small investors have been rocked recently by
trading gone haywire by misbehaving computers — and that those snafus could be
curtailed if surge protectors were in place.
Angel, who is expected to submit a comment letter to the Securities and
Exchange Commission as early as today, will seek surge protectors and ask
regulators to focus on safeguards that help investors decipher the “integrity
of the data” they receive during hectic trading.
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