The USA Stock market regulator SEC and Commodity Futures Trading Commission has started a probe into the 6th May sudden market crash.
Most of the reviews coming in is the lack of circuit breakers and the tangled network of high-speed trading network. The different rules of trading on such different trading platform which are interconnected and the trade routing system is also under criticism by many and sources suggest that the cause of such sharp crash lies in between these things only. The computer programmes making the situation worst.
The initial focus of the investigations appeared to center on the way a growing number of high-speed trading networks interact with one another and with venerable exchanges like the NYSE. Most investors are unaware that these competing systems have fractured the traditional marketplace and have displaced exchanges like the Big Board as the dominant force in stock trading.
A source said that it appeared that as stock trading was slowed on the New York Exchange when big price moves started, orders moved automatically to other, electronic exchanges that did not have pricing restrictions.
