An article relating to this blog post on Finextra:
US markets gear up for e-trading surge with launch of Reg NMS regulations
As US exchanges and ECNs gear up for a spike in electronic trading following the introduction of the Regulation NMS trading rules today, the New York Stock Exchange (Nyse) - the world's largest market...
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As leading FTSE shares post triple-digital losses in London this morning, the markets await with trepidation the response from Wall Street. The continuing slide in stocks in London follows further reverses in the Dow on Friday afternoon and another hammering
for the Asian markets this am.
The market wobble couldn’t have come at a worse time for US stockmarket regulators, who this morning will oversee the introduction of the Trading Phase of Regulation NMS, the new rules governing transparency and best price execution in equity market trading.
The Trading Phase was designed to identify and work out any problems before the full implementation of the rule changes later in the year.
In recent months, many of the exchanges and ADF participants have developed new automated trading systems or significantly modified their existing automated trading systems in anticipation of Reg NMS.
Sensing the anxiety on the Street, the SEC issued a statement late Friday explaining provisions for a market-wide suspension of the trade-through rules should systems problems or malfunctions arise.
Fair enough. But given
the problems experienced last week – where capacity constraints overwhelmed order-routing systems at the Nyse and knocked out the Dow Jones index calculators - a more prudent course of action would have been to simply set back the timetable for the roll-out
of the new rules until after the markets had ridden through the current turbulence.